Govt Focused on Reviving Economy from the Brink: Adviser

Finance Adviser Dr. Salehuddin Ahmed has stated that the interim government’s primary objective is to pull the economy back from the brink of collapse. “When we took charge last year, we focused on reviving an economy teetering on the edge of disaster. The damage was so severe that its true scale is only clear when examined closely,” he explained in a recent interview with BSS.

To address the economic crisis, Dr. Salehuddin emphasized that immediate directives were issued to the Bangladesh Bank, commercial banks, particularly struggling ones, and other financial institutions to tighten scrutiny before approving new loans.

Describing the recovery strategy, Dr. Salehuddin highlighted the steps taken to tackle mismanagement in the banking sector. Shortly after assuming office, he instructed the central bank governor to exercise authority and address issues within troubled banks. As a result, Bangladesh Bank made significant changes to the management boards of several banks, including reshuffling key posts like Managing Directors and Chairmen. These efforts are ongoing, though it will take time to fully stabilize the sector.

Additionally, restrictions were imposed on issuing new loans and opening Letters of Credit (LCs) to maintain balance of payments stability.

Dr. Salehuddin, who is also a former central bank governor, mentioned further changes in the management of key financial institutions, including the Bangladesh Development Bank Ltd (BDBL), BASIC Bank, the Investment Corporation of Bangladesh (ICB), the Bangladesh Securities and Exchange Commission (BSEC), and the Bangladesh House Building Finance Corporation (BHBFC). Auditors have been appointed at six banks to assess Non-Performing Loans (NPLs), as well as evaluate the quality of loans, assets, and liabilities. This will guide necessary actions on distressed loans.

As a result of these measures, Dr. Salehuddin reported improvements in both the banking sector and capital markets. The National Board of Revenue (NBR) is also undergoing digitalization, streamlining income tax and customs procedures.

He added that online income tax collection has risen, with tax revenue from major cities like Dhaka and Chattogram also showing significant growth. Public servants and other stakeholders have responded positively to these reforms, which are helping to stabilize the economy.