Finance Advisor Dr. Salehuddin Ahmed on Saturday revealed that the country’s banking sector needs approximately $35 billion for its reconstruction due to severe financial mismanagement and embezzlement.
He noted that while the International Monetary Fund (IMF) initially projected the required amount at $18 billion, recent assessments indicate that the need has doubled.
Dr. Ahmed made these statements on Saturday during the launch of the book Economy, Governance, and Power: An Account of Lived Life, authored by Dr. Hossain Zillur Rahman.
The event was held at the CIRDAP auditorium in Dhaka, where Dr. Rahman also chaired the session.
The Finance Advisor discussed the gravity of Bangladesh’s current economic crisis, explaining that the scale of the disaster faced by the country was unprecedented globally when the new government took office in August last year.
He emphasized that a staggering 80% of the funds within the banking sector have been embezzled. Citing a hypothetical example, Dr. Ahmed stated that if a bank had outstanding loans of Tk20,000 crore, Tk16,000 crore of that amount would have been misappropriated.
He criticized the absence of proper financial institutions and legal frameworks, noting that not only were laws violated, but the entire financial process had been compromised. He further lamented that those responsible for the embezzlement continue to hold influential positions without facing accountability or consequences.
Dr. Salehuddin also remarked on the broader governance challenges, underscoring that even the Prime Minister lacks adequate checks and balances, and Members of Parliament are often left with little accountability. He argued that meaningful reforms would be nearly impossible unless these core issues are addressed.
He concluded his speech by stressing the need for reforms not only within governmental institutions but also within political parties, asserting that true progress could only be made through comprehensive institutional changes.
