Extortion drives fare from Tk 5,000 to Tk 12,000

Finance Adviser Dr Salehuddin Ahmed has identified extortion as a major factor behind the country's failure to control high inflation.

“If a truck travels from Mahasthangarh to Dhaka, the actual fare should be Tk 5,000. But due to extortion, the final cost rises to Tk 12,000. Extortion remains a persistent issue,” the Finance Adviser said.

In an interview with BBC Bangla, he noted that, in addition to those previously involved in extortion, individuals seeking political dominance are now engaging in the practice. Local-level extortionists also remain active.

He further remarked that resolving the issue completely would be difficult before an elected government takes office.

The finance adviser stated that inflation is a long-standing issue. The current state of inflation has not emerged in just the past two to three years. There has been significant income growth, leading to extravagant spending. Additionally, large-scale projects worth crores of taka have contributed to the issue. The challenge with mega projects is that returns and economic benefits take time to materialise. For instance, a newly built bridge does not immediately impact the supply chain. Meanwhile, remittance inflows have declined significantly.

“As a result, it is not that we have completely failed to control inflation—we have managed to some extent. Food inflation has risen slightly, while non-food inflation has decreased somewhat. However, overall inflation has increased. We are trying our best to maintain the supply chain," he said.

However, the supply chain remains disrupted, with too many middlemen involved. When asked about reducing extortion, he said, “A political government had the advantage of having enforcement mechanisms. But we do not have that. You know the limitations. The Consumer Rights Protection Act and a few magistrates alone cannot control this issue.”