Urgent steps needed to deal with the financial crisis

when the new government takes its office, Bangladesh’s banking sector is adrift after years of widespread plunder.

This situation has been created by the triple pressure of long-standing accumulated irregularities, money laundering, and the global recession.

Its main task now is to address the huge deficit created by spending exceeding income.

The need of the hour is not just to promise reforms, but to take quick and effective steps to overcome this crisis.

We believe that the main reason for the current economic stagnation in the country is the decline in investment and the crisis of confidence among entrepreneurs.

Long political instability and the deterioration of the law and order situation have forced businessmen to fold their hands.

The credit flow to the private sector has fallen to an all-time low. Without ensuring uninterrupted supply of gas and electricity to industries and creating an investment-friendly environment, no initiative will see the light of day.

In addition, the banking sector is now deeply damaged.

Many banks are facing a liquidity crisis due to the unprecedented looting and corruption that occurred during the tenure of the fallen Sheikh Hasina led government.

On the top, contractionary monetary policy to control inflation has pushed interest rates on loans to 16 percent, putting business costs beyond the reach of the general public.

Industrialization is not possible without bringing dynamism to the banking sector through recovery of defaulted loans and reducing loan interest rates to a reasonable level.

At the same time, attention must be paid to foreign exchange reserves and revenue income.

A strong stance against hundi must be taken to maintain the recent positive trend in remittance flows. Ensuring availability of foreign credit is also essential to boost import-export trade.

However, increasing revenue will not yield any benefits if transparency in government spending cannot be ensured.

To overcome the current economic downturn, the government needs to focus more on practical and rapid decision-making than theoretical discussions.

Through infrastructure construction and administrative reforms, entrepreneurs must be reassured that their investments are safe. It must be remembered that sustainable development is not possible without economic stability.

If the wheels of the economy cannot be set in motion, not only will the suffering of the common people increase, but the government’s reform efforts will also be hampered.

Therefore, we think that the government should set out and begin implementing an Emergency Economic Recovery Roadmap within its first 100 days.