Govt striving for economic stability: Planning Adviser

Planning Adviser Dr Wahiduddin Mahmud has said the government is now making strides through significant reforms and enhanced regulatory measures towards fostering a positive outlook for economic stability and recovery.

Dr Mahmud also underscored the urgent need for structural reforms.

He said this at an Iftar event hosted by the Development Journalists Forum of Bangladesh (DJFB) at the NEC conference room at Sher-e-Bangla Nagar on Monday.

The Planning Adviser pointed out that some economic indicators suggest resilience but the banking sector still remains a concern which must be addressed.

Besides, he highlighted a key issue which is the lack of transparency in project implementation, which complicates citizens’ and journalists' ability to monitor progress effectively.

He said the government has taken steps to enhance transparency, including publishing project details online, which would allow the public and the journalists to track developments and foster greater accountability.

The Planning Adviser said foreign investment, which is crucial for economic growth, is yet to reach to an expected level while the export sector has experienced some positive growth.

He also emphasized ensuring transparency in project management and restoring investors’ confidence.

Dr Mahmud said sustainable management of foreign debt is crucial to avoid economic crises while debt repayment is increasing rapidly and it would increase in the next few year years also.

He said reforms in the banking sector are becoming increasingly urgent as well as a slight increase in remittance inflows.

In this regard, he mentioned that an additional $4 billion has come in as inward remittance over the past eight months.

However, a significant portion of expatriate earnings continues to flow through informal channels.

To mitigate this, he said stronger measures need to be implemented to channel remittance flows through formal banking avenues.

In addition, Dr Mahmud stressed the need for diversification of the export sector, reducing the country’s dependency on a narrow range of industries.

“This will bolster long-term economic resilience and provide new avenues for growth,” he said.

He said still there is hope for improvement, especially through ongoing reforms and a commitment to transparency.

Addressing the banking sector, Dr Mahmud pointed out that failures in the previous regime, including unchecked mismanagement and unabated corruption, have exacerbated financial instability.

He emphasized that stronger oversight and swift action are necessary to curtail the growing culture of loan defaults among institutions and entrepreneurs.

The Planning Adviser also suggested the Bangladesh Bank implement stricter measures to prevent further deterioration of the banking sector.

Inflation is another pressing issue that has impacted the lower and middle-income groups, he said.