Finance Advisor Dr. Salehuddin Ahmed said that the interim government is leaving the country's economy in a 'satisfactory and stable' state for the next elected government.
He also said, “I think we are leaving the economy in a satisfactory state. If the next government takes office, we will not face a major economic crisis. The situation is stable now, not as shaky as before.”
However, many challenges remain ahead, said Dr. Salehuddin Ahmed.
He made these remarks in response to questions from the journalists after a meeting of the Advisory Council Committee on Government Procurement at the conference room of the Cabinet Division of the Secretariat on Tuesday.
Dr. Salehuddin Ahmed said that the economy is no longer as fragile or unstable as before. The economic foundation for the future government has been stabilized.
When asked whether the government has taken a record amount of loans or not, the Economic Advisor said that borrowing has indeed increased. However, a significant amount of foreign debt has also been repaid.
“Yes, borrowing has increased, but we have also repaid about six billion US dollars of foreign debt. Repayment of debt is equally important. Many large and expensive infrastructure projects have been avoided,” the Finance Advisor said. “We did not go for tunnels or any other expensive mega projects that rely on thousands of crores of taka. That is why the government's debt burden did not increase further. Employment creation was one of the biggest challenges of the government, because, continuous support to small and medium enterprises is needed to create employment.”
He explained: “Our big challenge was employment creation. Small and medium enterprises are essential for this. But, we did not have enough financial opportunities. Big factories are not labor-intensive and have many complications.”
While allaying concerns about the conflicting statements on economic risks, Dr. Salehuddin clarified that even if the economy is stable, reforms need to be consolidated and taken forward cautiously.
He emphasized that reforms require time, cooperation and procedural discipline, which is quite difficult in the complex administrative system of Bangladesh.
He said, “Reform is not just a matter of speeches. It requires process, cooperation and patience. The processes within the system are very complex. Without cooperation, it becomes very difficult.”
Highlighting various aspects of the reform, Dr. Salehuddin Ahmed said that the government has made significant progress in digitizing land records and khatian maps, which has made these services affordable and more accessible to citizens.
He said, “The land records and land records are being digitized. Now people are getting the service for Tk 20 taka, which used to cost Tk 500 earlier. We are expanding digital access across the country.”
He described the initiative as one of the most fundamental service delivery reforms, which will reduce harassment and increase transparency.
Dr. Salehuddin also said that the government is preparing to face international arbitration against S Alam Group-linked business interests in financial disputes and allegations of money laundering.
He further said, “After the concerned party filed a complaint, a case has been filed with the World Bank-affiliated arbitration body, the International Center for Settlement of Investment Disputes (ICSID). They have gone to arbitration at the World Bank forum. We have received the notice and will have to respond to it. This is a matter involving huge amounts of money.”
The Finance Advisor said that the government has decided to appoint an international lawyer to deal with the case.
He said, “We will appoint a law firm. This is not a simple matter. Legal preparations are essential.”
He also said that a governmental team will visit Washington DC to deal with the arbitration process.
Regarding the power sector reforms, the Finance Advisor said that electricity tariffs are not being increased arbitrarily, but are being rationalized.
He said, “This is tariff restructuring, not price hike. Money is being adjusted from one part to another. It will not affect power supply.”
He further said that the efficiency issues of power plants including Ashuganj are also under review.
Dr. Salehuddin said, “Despite criticism, many fundamental reforms have been implemented, but they are not always visible.”
He said nothing has been done by people, because they only look for visible projects. But many fundamental procedural reforms have been completed. If no one wants to see, then they will not see.
Bd-pratidin English/Lutful Hoque
