Dhaka: Experts at a discussion emphasized the necessity of granting complete independence to Bangladesh Bank to ensure good governance, effective monetary policy, and the economic health of the nation. They highlighted that the bank’s independence has been deliberately eroded, allowing economic oligarchs to operate unchecked, reminiscent of the East India Company’s exploitative practices.
According to Bangladesh Sangbad Sangstha, these unchecked financial irregularities have pushed the country’s banking system to the edge of collapse, undermining public trust and weakening the economy’s foundation. The experts shared their insights during the July-August edition of the Monthly Macroeconomic Insights (MMI) held at the Policy Research Institute (PRI) conference room, organized by the Centre for Macroeconomic Analysis (CMEA) of the PRI in collaboration with the Department of Foreign Affairs and Trade (DFAT) of the Australian Government.
Dr. Mohammed Farashuddin, Chairperson of the Board of Trustees at East West University and Former Governor of Bangladesh Bank, attended the event as the chief guest. He emphasized the urgency of tax reform, stating that 20 lakh new taxpayers should be brought under the tax net annually to prevent the burden from falling disproportionately on existing taxpayers. He also highlighted the need for stronger actions against money laundering and supported employment generation through skills training and low-interest loans for small entrepreneurs.
Dr. Khurshid Alam, Executive Director of PRI, presided over the event and commented on the constraints on capital machinery imports and other inputs, which are hindering growth. He pointed out the need for sustainable growth supported by a stable system and sound macroeconomic conditions, which would require comprehensive reforms in the future.
During the keynote presentation, Dr. Ashikur Rahman, Principal Economist at PRI, asserted that the economic stabilization achieved through contractionary policies and governance measures in the banking sector can only be sustained with investments in the capacity and autonomy of economic institutions, particularly Bangladesh Bank. He described central bank independence as a fundamental necessity for Bangladesh’s economic future, warning that without it, stabilization would remain fragile and vulnerable.
Kamran T Rahman, President of Metropolitan Chamber of Commerce and Industry (MCCI), and Clinton Pobke, Deputy Head of Mission, Australian High Commission in Dhaka, also contributed to the discussion. Rahman stressed the importance of employment expansion and skills development, while Pobke highlighted the potential of governance reforms to deliver long-term dividends, contingent on the next government’s choices. He reaffirmed Australia’s commitment to supporting Bangladesh’s reforms through partnerships and trade ties.
Other distinguished panelists included Khondoker Shakhawat Ali, Visiting Research Fellow at BIGD, BRAC University, and Rizwan-ur Rahman, Former President of Dhaka Chamber of Commerce and Industry (DCCI). Ali noted the positive impact of technology integration in the banking sector, while Rahman called for a separate commission to ensure the independence and accountability of Bangladesh Bank.
The event concluded with closing remarks from Dr. Khurshid Alam.