Finance Adviser Dr. Salehuddin Ahmed has called on policymakers and stakeholders to refrain from approving large-scale development projects that lack strategic justification, warning that such initiatives could jeopardize Bangladesh’s debt sustainability.
He made the remarks on Friday while speaking as the chief guest at a workshop titled “Navigating Public Debt in Bangladesh,” held at a local hotel in Gazipur. The event was organized by the Strengthening Public Financial Management Programme to Enable Service Delivery (SPFMS), under the Finance Division.
Dr. Ahmed stressed that before any major project receives approval, it is essential to evaluate its actual demand, feasibility, and long-term socio-economic benefits. He emphasized that debt management is no longer the sole responsibility of the government; it must be a collective national effort involving the corporate sector, Bangladesh Bank, the bond market, and private sector actors.
He further underscored the importance of real-time, integrated data systems and institutional interoperability, noting that effective debt management hinges on the availability of accurate, up-to-date information—something Bangladesh still struggles with.
Speaking at the same event, Dr. Anisuzzaman Chowdhury, Special Assistant at the Ministry of Finance, highlighted the importance of coordination among government ministries and departments. He urged all relevant actors to convene and formulate effective debt strategies through shared consultation.
Finance Division Secretary Dr. Khairuzzaman Mozumder emphasized the necessity of innovative planning to sustain fiscal stability. He said the country must now prioritize domestic borrowing strategies, as external funding sources are narrowing. He also stressed the urgent need to build a stronger professional workforce with in-depth expertise in debt management, in order to cope with evolving economic challenges.
Several senior officials presented their insights at the workshop. Among them were Additional Secretary (Treasury and Debt Management) Hasan Khaled Foisal, Joint Secretary Mohd Rashedul Amin, and Deputy Secretary Farid Ahmed. Arindam Roy, Economist at the International Monetary Fund (IMF), joined the session virtually to provide a global perspective.
Moderation was carried out by Additional Secretaries Shirajun Noor Chowdhury, in charge of Budget and Macroeconomics, and Dr. Ziaul Abedin, responsible for Macroeconomics-1, both from the Finance Division.
The workshop drew participation from approximately 75 officials representing the Finance Division, Economic Relations Division, Department of National Savings, Bangladesh Bank, and the World Bank. These stakeholders discussed the pressing fiscal challenges facing the country amid a turbulent global economic climate.
IMF Economist Arindam Roy noted that Bangladesh is making visible progress with strategic reforms in debt management. However, he cautioned that rising inflation, global interest rates, and a weakened Taka have significantly increased the cost of debt servicing. He pointed out that the share of external debt rose from 37 percent in FY2023 to 43 percent in FY2024, driven in part by exchange rate pressures.
Roy urged Bangladesh to continue strengthening institutional capacity, improving workforce skills, and fostering a sense of national ownership to ensure the sustainability of ongoing debt reforms.
The workshop ended with a unified call for prudent fiscal planning, robust inter-agency cooperation, and a commitment to responsible borrowing as Bangladesh navigates the complexities of its public debt landscape.
Bd-pratidin English/ Jisan
