TDS Desk

Finance Adviser Dr Salehuddin Ahmed has announced plans to introduce policies ensuring that money laundering becomes impossible in the future.

Speaking at an event hosted by BRAC University on Saturday, he acknowledged the substantial sums laundered from Bangladesh in the past and stated that while efforts are underway to recover the funds, the process will take considerable time.

“We are crafting a policy framework that will prevent money laundering going forward,” Dr. Salehuddin said.

He highlighted ongoing short-term reforms aimed at addressing economic damage caused over the past 15 years. “Some stability has been restored in the foreign exchange market, but radical changes across the economy cannot be implemented overnight,” he added.

A NEW PATH FORWARD

Dr Salehuddin explained that the interim government is setting the foundation for future administrations. “We are paving a new road that must guide governance moving forward. If corruption re-emerges, public outrage may return,” he warned.

The event, titled “Financial and Economic Reforms in Bangladesh,” organised by BRAC Business School, featured discussions on pressing challenges and necessary reforms for the country’s financial sector.

INFLATION AND TRANSPARENCY

Addressing concerns about inflation, Dr Salehuddin attributed it to flawed policies of the previous government and inaccuracies in data reported by public institutions. “There has been a lack of transparency and accountability, leading to corruption and injustice. The people of Bangladesh are paying the price,” he said.

He emphasised the need for accurate data, stating, “Incorrect information leads to flawed policy formulation. I have directed the Ministry of Finance to ensure data accuracy.”

INEFFICIENT PROJECTS AND LOANS

Criticising the approval of projects without proper feasibility studies, Dr Salehuddin said, “Loans were taken at high-interest rates without considering project earnings or costs. We’ve rejected offers for high-interest loans because they would have been unsustainable.”

He also criticised the previous governor of Bangladesh Bank, alleging that $12 billion in reserves were spent to stabilise the forex market, yet no meaningful results were achieved. “This policy legacy hinders rapid change, even when urgently needed,” he said.

CALLS FOR BROADER REFORMS

Dr Debapriya Bhattacharya, Honorary Fellow at the Center for Policy Dialogue (CPD), echoed concerns during his address. He argued that the country’s development narrative has politicized data, creating an imbalance between growth indicators and economic realities.

“GDP is rising, but private sector investment and tax-GDP ratios remain stagnant at 8-9 per cent. Where is all this money going?” Dr Bhattacharya asked, pointing to signs of a “middle-income trap.”

He stressed the need for comprehensive state reforms, stating, “Economic stability must come first. ‘Two-paisa reforms’ will not suffice to fix structural imbalances.”

URGENT APPEAL FOR STABILITY

Both speakers emphasised the importance of stabilising the exchange rate and controlling prices of daily commodities. They urged the interim government to act swiftly to restore public confidence in the economy.

Selim RF Hossain, CEO and Managing Director of BRAC Bank, and Farzana Lalarukh, Commissioner of the Bangladesh Securities and Exchange Commission, also spoke at the event, endorsing the need for robust reforms to address systemic economic challenges.

The dialogue provided a platform for policymakers, economists, and stakeholders to discuss actionable strategies for financial reform, with a shared goal of achieving long-term stability and sustainability.