The recent disclosure by Finance Adviser Dr Salehuddin Ahmed that the IMF has nearly doubled its estimated cost for reforming Bangladesh’s banking sector — from $18 billion to an alarming $35 billion — has cast a stark light on the depth of the crisis afflicting the nation’s financial system.
This revelation is not merely a matter of figures; it is a clear indictment of decades of mismanagement, regulatory negligence, and institutional decay.
Dr Ahmed’s warning that approximately 80 per cent of the banking sector’s funds have been misappropriated, with Tk 16,000 crore of Tk 20,000 crore in outstanding loans effectively “disappeared”, is nothing short of catastrophic.
It reflects a system in free fall—one where accountability is elusive, oversight is virtually absent, and those at the helm of the crisis remain largely unchallenged in their positions of power.
This situation is not a sudden development, but rather the culmination of years of political patronage, lax enforcement of regulations, and wilful ignorance by those charged with safeguarding public finance.
What is most concerning is Dr Ahmed’s observation that, despite growing calls for reform, the very actors responsible for the decline continue to operate without consequence. This not only erodes public trust but threatens the future of Bangladesh’s economic stability.
The adviser’s remarks come at a critical juncture. Rising loan defaults, repeated banking scandals, and the systemic lack of regulatory oversight have fueled public frustration. The IMF’s revised estimate is not merely a number; it is a warning — a mirror reflecting the urgent need for reform that goes beyond patchwork solutions.
As Dr Ahmed rightly pointed out, economic recovery is inseparable from governance reform. The political system’s failure to hold top leadership accountable only deepens the dysfunction. Unless political parties themselves commit to introspection and transformation, economic progress will remain both fragile and superficial.
Bangladesh is at a crossroads. Ignoring the crisis or delaying reform is no longer an option. What is now needed is political will, institutional courage, and a comprehensive restructuring of both the banking sector and the governance framework that enables corruption.
The cost of inaction is far greater than the $35 billion the IMF has projected. It is the cost of lost public trust, slowed economic growth, and the continued erosion of Bangladesh’s financial foundations. The time for bold, systemic change is now.
