Dhaka: Finance Adviser Dr. Salehuddin Ahmed today outlined some key economic challenges which the next government would face as he stressed on activating more trade and industry, generating more employment, and strengthening financial sector institutions. “If business doesn’t expand, employments will not come. Without employments, people’s purchasing power will remain weak. This is one of the biggest challenges,” he said.
According to Bangladesh Sangbad Sangstha, the adviser made the observations while responding to various queries from reporters after chairing a meeting of the Advisers Council Committee on Government Purchase at the Cabinet Division conference room at Bangladesh Secretariat. He emphasized that one of the main challenges for the next government would be to revitalize business and industrial activities, as job creation depends on a vibrant private sector.
Dr. Salehuddin noted that Bangladesh still possesses a relatively small industrial base and remains heavily dependent on exports. “We need to build our own industrial strength, especially small and medium industries,” he stated, adding that controlling inflation remains a concern and cannot be managed by monetary policy alone. “Inflation is a multidimensional issue. We have tried to address it, but it needs broader measures,” he explained.
Discussing the banking sector, Dr. Salehuddin mentioned that steps have been taken to reorganize it, but more challenging decisions lie ahead. He praised the central bank governor’s recent initiatives, although he acknowledged that these efforts were not sufficient. “Credit supply is still limited and confidence has not fully returned, although deposits have started to increase recently,” he remarked.
Furthermore, he highlighted the necessity of developing the capital market to lessen the heavy reliance on banks for business financing. “If we fail to develop the capital market, business and trade won’t grow relying only on banks. Equity participation through the stock market and a strong bond market, especially for the private sector, are essential,” he commented, noting that regulatory reforms face legal hurdles and court-related challenges.
The Finance Adviser described the insurance sector as another area requiring improvement, indicating that while efforts have been made, progress remains limited. Energy was identified as a significant long-term challenge, with Dr. Salehuddin emphasizing the importance of boosting domestic exploration. “We need more drilling, including offshore. At the same time, we have not been able to develop solar energy to the extent needed,” he concluded.