Staff Reporter :
Finance Adviser Dr Salehuddin Ahmed has disclosed that the International Monetary Fund (IMF) has nearly doubled its estimated cost for reforming Bangladesh’s banking sector-from $18 billion to a staggering $35 billion – reflecting the depth of the sector’s ongoing crisis.
Dr Ahmed made the remarks on Saturday while speaking as chief guest at the launch of economist Dr Hossain Zillur Rahman’s new book Orthoniti, Shashon O Khomota: Japito Jiboner Alekkho, held at the CIRDAP auditorium in Dhaka.
“The IMF initially projected a requirement of $18 billion. However, following a more thorough evaluation, the estimate was revised to $35 billion. This stark increase reveals just how severe the crisis has become,” he said.
Reflecting on the broader economic landscape since the interim government assumed office in August last year, Dr Ahmed noted, “It quickly became apparent that few countries were facing a situation
as critical as ours. The economy was on the brink of collapse.”
Addressing the state of the banking system, the adviser warned of extensive mismanagement, stating that around 80 per cent of banking sector funds had been misappropriated.
“If the total outstanding loans amounted to Tk 20,000 crore, then Tk 16,000 crore has effectively disappeared,” he said, highlighting the scale of financial irregularities and the urgent need for accountability.
He further raised concerns about institutional erosion, observing that very few functional institutions remain.
“The system is severely compromised, and worryingly, many of the individuals responsible for the current situation remain in positions of authority,” he said.
While acknowledging calls for sweeping reforms, Dr Ahmed recognised the practical challenges of replacing entrenched actors. “It is not feasible to remove everyone, so we are attempting to compel them to act – through either persuasion or disciplinary measures.”
He also stressed the necessity of governance reform alongside economic recovery, noting the lack of effective oversight within the political system. “There is virtually no mechanism for holding the prime minister or members of parliament accountable. Without political reform, economic reform will remain superficial.”
Dr Ahmed concluded by emphasising the need for political parties themselves to undergo transformation, arguing that sustainable economic development is unattainable without broader systemic change.
His comments come at a time of rising public concern over escalating loan defaults, recurring banking scandals, and the absence of robust regulatory enforcement in Bangladesh’s financial sector.
