Dhaka: Finance Adviser Dr. Salehuddin Ahmed has asserted that the primary responsibility of the interim government is to rescue the economy from its precarious position. He emphasized that since taking office last year, significant attention has been focused on economic recovery efforts, acknowledging the severe impact that required urgent intervention.
According to Bangladesh Sangbad Sangstha, Dr. Salehuddin, in an interview, outlined the strategic measures undertaken to address the economic challenges. He highlighted that directives were promptly issued to the Bangladesh Bank and other financial institutions to conduct thorough scrutiny before granting loan approvals, particularly targeting troubled banks.
Dr. Salehuddin elaborated on the recovery strategy, stating that upon assuming office, they instructed the central bank governor to tackle misgovernance within the banking sector. This led to a restructuring of the boards and managements of several banks, including changes in key positions such as Managing Directors and Chairmen. He noted that these efforts are ongoing and will require additional time to complete.
Restrictions have also been imposed on the disbursement of new loans and the opening of Letters of Credit (LCs) to maintain the balance of payments. Additionally, changes have been implemented in the management of entities like the Bangladesh Development Bank Ltd, BASIC Bank, and the Investment Corporation of Bangladesh, among others.
Auditors have been appointed at six banks to evaluate Non-Performing Loans (NPLs), assess loan quality, asset quality, and liabilities, and take corrective actions on distressed loans. Dr. Salehuddin remarked that these measures have led to improvements in the banking sector and capital market performance. The National Board of Revenue (NBR) is undergoing digitalization, and income tax and customs procedures are being simplified.
He further noted the positive response from public servants and other stakeholders to these initiatives, which have resulted in increased online income tax collections, particularly in major cities like Dhaka and Chattogram.