‘Bangladesh’s macroeconomic stability not at risk over Russia-Ukraine crisis’

Finance Minister AHM Mustafa Kamal today told the parliament that the Russia-Ukraine crisis will not put the country's macroeconomic stability at great risk at the moment, even if it affects the country's economy.

The minister made the demand while responding to a query from Shafiul Islam, Awami League MP from Dhaka-10.

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The 17th session of parliament began at around 5:00 pm with Speaker Shirin Sharmin Chaudhury in the chair.

The question-answer session of yesterday's sitting was tabbed.

The finance minister in his scripted answer said the Russia-Ukraine military crisis is going to hit Bangladesh's economy in the short and medium-term.

"What the outcome will be in the long run will depend on the duration of the war and the duration of the evolving situation due to the war. However, it seems that even if this crisis affects the economy of Bangladesh, it will not put the stability of the country's macro-economy at great risk at the moment," he said.

The finance minister said Russia's military campaign in Ukraine, as well as Western economic sanctions on Russia and its ally Belarus, had had a negative impact on the global economy. The crisis has destabilised the fuel and natural gas markets. Russia Ukraine crisis has also affected Bangladesh.

He said the ongoing military crisis and sanctions could inevitably push up the prices of natural gas, crude oil, fertilisers, wheat, nickel, aluminium and important raw materials for electrical products and related finished goods.

"The rise in oil and gas prices has led to an increase in the cost of food, consumer goods, industrial raw materials and international transport, which could lead to four percent inflation in the country.

The crisis could also complicate payments for Bangladesh's garment exports to Russia, the minister said.