Country not in financial crisis, but faces political, economic challenges: Dr Salehuddin

Finance Adviser to the interim government Prof Dr Salehuddin Ahmed has said that the country is not in financial crisis, but there are some political and economic challenges due to the internal and external factors.

He made the remarks while addressing a policy dialogue on "Financial and Economic Reforms in Bangladesh 2024" at Brac University in the city on Saturday.

Brac Business School of the Brac University organised the seminar on its campus in Merul Badda in the city.

The event was addressed by Centre for Policy Dialogue (CPD) distinguished fellow Dr Debapriya Bhattacharya, Commissioner of Bangladesh Securities Exchange Commission (BSEC) Farzana Lalarukh and Brac Bank CEO and Chairman of Association of Bankers Bangladesh (ABB) Selim RF Hussain.

Dr Salefuddin Ahmed said most of the institutions, specially, the state-owned companies, have been on the brink of collapse. There was no governance and accountability there.

"We‍‍`re trying to bring good governance which is a big challenge,”he said, adding, "But I‍‍`m not that much disappointed with the situation as the Bangladeshi peoples are very efficient and creative".

He said the government has been working to bring down inflation and create market stability by taking different measures like waving import duties.

"But there are so many factors--from production to supply chain. The traders have to pay extortions at 16-17 points which push up the prices,”he said. 

He said due to the middlemen and extortions, for instance, the price of per kg of brinjal goes up to Tk 60 at kitchen market from Tk 10 at the production level due to such middle-interest groups and extortions. All the groups run the extortions in a mutual understanding. 

"To stop this extortions and end the middle-interest groups‍‍` business,a political solution is needed.” he said.

Criticising the previous regime‍‍`s GDP calculations through wrong data and misinformation, the Finance Adviser said there was no accountability of the institutions.

He observed that there were many projects for which no feasibility study was conducted. Now it‍‍`s found that the Indian Adani Group did not pay their taxes in implementing the project.

"We inherit all these and now we‍‍`re repairing and reforming these with the support of people,”he said.

He said this government may not be able to complete all the reforms, but leave a footprint so that the next government can follow and implement it.       

Conveying special thanks and appreciation to the Brac University students and teachers for their role in the July-August Mass Uprising 2024, Dr Debapriya Bhattacharya said that the previous regime has destroyed all the institutions which put the country in the challenges.

"The central bank which was supposed to oversee the banking sector actually helped the looters to loot the banks,” he added.

He said the previous government had depicted a growth narrative where all the miss information and disinformation were used. The growth figure was a false figure. 

He alleged that the previous Awami League regime politicised the data and information. There was no private investment, but there was GDP growth. The Tax-GDP ratio was not increased. They spent money to show the visible development.

He said the previous government intentionally picked up two sectors--financial sector and the energy sector to loot the wealth.

He said an anti-reform and corrupt alliance was created among the corrupt politicians, corrupt businessmen and corrupt bureaucrats to loot the state-wealth.            

BSEC Chairman Farzana Lalarukh said that the government has been working to implement reforms in the capital market.

"The first step in this regard is to rebuild the confidence of the investors. We‍‍`re trying to do that", he added.

He said the BSEC will implement reforms to ensure accountability and transparency through a digital platform.