Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue (CPD) and convener of the Citizen's Platform for SDGs, termed the banking and energy sectors as two infected lungs of Bangladesh’s economy.
He made the comment while moderating a media brief titled “National Budget 2024-25 and Prevailing Situation: What did the Disadvantaged Citizens Get?” held in the city on Monday. CPD Senior Research Fellow Towfiqul Islam Khan presented a keynote at the event.
Debapriya said at the programme, “Just as it becomes difficult to breathe when a person’s lungs are infected, the economy cannot breathe when there is a crisis in these two sectors.
“The proposed budget does not have proper guidelines on inflation, internal investment, foreign investment, trade balance, growth and employment. There is nothing special about the fragile banking sector in the budget.”
He continued, “Major political commitments were needed on urgent issues such as energy, banking, capital market, and port management. But we did not get it in the budget. This is because there was a lack of professionalism.
“As a result, the policy leadership and coordination needed to improve the ongoing situation is lacking.”
Debapriya then pointed out, “Power and politics is the root of all problems. Power is exerted through politics, which results in the disadvantage of already disadvantaged people.
“But despite all this, transparency, accountability and political will are necessary to implement targets in the budget.”
Policy Exchange Bangladesh Chairman and Chief Executive Officer M Mashrur Riaz said, “Energy, banking, and reserves, issues in those three things are enough to destroy an economy. Its formula is political indulgence. The proposed budget is silent on banking sector reforms.
“Solving this problem cannot be done technically, a political solution is necessary. Besides, the International Monetary Fund's (IMF) conditions for the banking sector were weak, and these needed to be tightened.”
Echoing the same, Transparency International Bangladesh Executive Director Dr Iftekharuzzaman said, “The banking sector is now on the edge of abyss. Because, the bank loan defaulters, who are leading the way, are now at the centre of state power.
“As a result, it is difficult to expect good governance in this sector.”
