Staff Reporter :
Former state minister for planning, Prof Shamsul Alam, highlighted the urgent need to tackle money laundering to address the current dollar crisis in Bangladesh.
Speaking at a seminar titled “Bangladesh Economy in Global Context: National Budget 2024-2025 on Growth, Inflation, Food and Nutrition Security”, organised by the Bangladesh Agricultural Economists Association, Prof Shamsul Alam pointed out that money laundering is responsible for an annual outflow of $7 to $8 billion, exacerbating the dollar shortage in the country.
“The main reason for the current dollar crisis in the country is money laundering as $7 to $8 billion is siphoned off annually. The dollar crisis started from money laundering. So, steps are urgently needed to prevent it,” Prof Shamsul stated.
He also addressed concerns over the banking sector, noting that 22 percent of loans are risky, leading to increased banking costs. He advocated for the establishment of a bank commission or a strong committee of expert economists to mitigate bad loans effectively.
Regarding inflation pressures, Prof Shamsul urged for expedited import decisions to prevent price hikes caused by delays in supply management. He emphasized that swift import policies could curb inflation and prevent syndication due to gaps in demand and supply.
In his remarks at the seminar, Finance Minister Abul Hassan Mahmood Ali acknowledged the ongoing budgetary discussions for the fiscal year 2024-25, highlighting the possibility of revisions to budget proposals as they await parliamentary approval.
Blasting the people who commented that Bangladesh would go bankrupt soon, he said that the World Bank continued to extend loans to Bangladesh as the global lender thinks the country is on the right track.
“How could one say that Bangladesh is going to bankrupt or has gone bankrupt?” the minister questioned.
“We have proposed a people-friendly budget. Try to understand this. There is still time to revise the budget as it has not yet been passed,” he said.
The minister also urged the critics to make comments on the economy carefully and take responsibility.
“Everybody wants to talk about the economy. It’s natural. But they have to talk responsibly and understand it properly,” he said.
He also requested people not to make premature comments about the budget.
“Agriculture is the main sector of Bangladesh. It will be disastrous if there is no agriculture. Many animals have been sacrificed on Eid-ul-Adha. Over one crore animals have been sacrificed. All animals are our own. It is also an indicator of the economy,” the finance minister said.