Adviser Optimistic About Economic Stability and Recovery

Planning Adviser Dr. Wahiduddin Mahmud

While praising the government's efforts to enhance transparency, such as publishing project details online, Mahmud cautioned that persistent governance issues, particularly in the banking sector, remain a significant concern.

"Governance failures, especially in the banking sector, must be urgently addressed," he said at an Iftar event hosted by the Development Journalist Forum of Bangladesh (DJFB) at the NEC conference room.

Mahmud also noted that while the export sector has shown positive growth, foreign investment remains below expectations. Restoring investor confidence, he said, requires greater transparency in project management.

The Adviser further emphasized the need for sustainable foreign debt management, warning that rising debt repayments could lead to future economic challenges.

In addressing the banking sector, Mahmud called for stronger oversight and swift action to tackle the growing issue of loan defaults among institutions and entrepreneurs.

He acknowledged a slight increase in remittance inflows but pointed out that a significant portion continues to flow through informal channels, putting pressure on foreign currency reserves. He urged stronger measures to channel remittances through formal banking channels.

Mahmud also highlighted the importance of diversifying the export sector to reduce dependence on a narrow range of industries and mitigate the impact of inflation on lower and middle-income groups.

Despite ongoing challenges, he expressed hope that continued reforms and a focus on transparency would stabilize the economy and restore public confidence.