Per Capita Income Rises in Local Currency Despite Drop in US Dollar Value

The government is taking steps to establish minimum monthly wages for workers in 12 new sectors to bring them under regulation. These sectors include private clinics, hospitals, diagnostic centers, the dairy industry, electronics manufacturing, poultry farming, brick kilns, amusement parks, battery manufacturing, dried fish processing, private airlines, stone crushing, and IT parks.

Government revenue collection in the first two months of the fiscal year 2023-24 in Bangladesh increased by nearly 15% year-on-year, reaching Tk 46,233 crore. This growth was primarily attributed to increased value-added tax (VAT) from multinational companies.

The import volume of 20 crucial revenue-generating products in Bangladesh experienced a decline during FY2022-23, leading to a decrease of Tk 5,500 crore in customs duty and tax collection. The economic challenges posed by the Covid-19 pandemic and the Ukraine-Russia conflict contributed to a severe dollar crisis, prompting the Bangladesh Bank to implement stricter measures on LC opening.

Despite gradual wage growth in Bangladesh since July 2021, it has consistently lagged behind inflation over the past 18 months, as per the Bangladesh Bureau of Statistics (BBS). In July 2023, wages for low and unskilled workers grew by 7.52%, falling short by 2.17 percentage points compared to the 9.69% inflation rate.

Despite a drop in the national poverty rate in 2022, Dhaka, Barishal, and Sylhet divisions in Bangladesh witnessed an increase in poverty. The rise was primarily observed in rural areas, while urban areas experienced reductions due to economic growth.

Bangladesh's per capita income has risen to Tk 29,367 in 2022-23, despite a drop of $28 in US dollar value. The provisional projection of the Bangladesh Bureau of Statistics (BBS) estimated that the per capita income would increase from Tk 241,047 to Tk 270,414 in 2022-23. The depreciation of the local currency resulted in the rise of per capita income in Bangladeshi taka.