Dhaka: Planning Adviser Dr Wahiduddin Mahmud has stated that the government is actively pursuing economic stability through significant reforms and enhanced regulatory measures. He highlighted the urgent need for structural reforms during an Iftar event hosted by the Development Journalists Forum of Bangladesh (DJFB) at the NEC conference room at Sher-e-Bangla Nagar.
According to Bangladesh Sangbad Sangstha, Dr Mahmud noted that while some economic indicators show resilience, the banking sector remains a concern that needs to be addressed. He emphasized the importance of transparency in project implementation, stating that the government has taken steps to enhance transparency by publishing project details online. This initiative aims to allow the public and journalists to track developments and foster greater accountability.
The Planning Adviser acknowledged that foreign investment, crucial for economic growth, has not yet reached expected levels, although the export sector has seen positive growth. He stressed the importance of ensuring transparency in project management and restoring investor confidence. Dr Mahmud also highlighted the sustainable management of foreign debt to avoid economic crises, mentioning that debt repayment is increasing rapidly and will continue to do so in the coming years.
Reforms in the banking sector are increasingly urgent, along with a slight increase in remittance inflows. Dr Mahmud mentioned that an additional $4 billion has come in as inward remittance over the past eight months. However, a significant portion of expatriate earnings continues to flow through informal channels. To counter this, he suggested implementing stronger measures to channel remittance flows through formal banking avenues.
Additionally, Dr Mahmud stressed the need for diversification in the export sector to reduce dependency on a narrow range of industries, which he believes will bolster long-term economic resilience and provide new growth avenues. He expressed hope for improvement through ongoing reforms and a commitment to transparency.
Addressing the banking sector, Dr Mahmud pointed out that failures in the previous regime, including unchecked mismanagement and unabated corruption, have exacerbated financial instability. He emphasized the necessity of stronger oversight and swift action to curtail the growing culture of loan defaults among institutions and entrepreneurs. He suggested that the Bangladesh Bank implement stricter measures to prevent further deterioration of the banking sector. Inflation, another pressing issue, has impacted the lower and middle-income groups, he added.