Finance Adviser: Economy not in bad shape; it has merely slowed down

Finance and Planning Adviser Dr Salehuddin Ahmed on Tuesday urged government officials to expedite the completion of ongoing development projects, stressing their critical impact on Bangladesh’s economy and its people.

“We have talked about the Annual Development Program (ADP) and its implementation. We asked the concerned authorities to complete the ongoing projects, considering their outcome for the people and economy of the country,” the adviser told reporters following his first meeting with senior officials at the Planning Ministry.

Regarding allocation of funds for the ongoing mega projects, he said that he has instructed to place the matters to the appropriate authority. “We will review these accordingly,” he said, adding that wasteful spending must be curtailed, whether it be administrative costs or other expenses.

“We must ensure the proper use of funds, whether they come from domestic sources, loans, or grants,” he emphasized, calling for transparency and accountability in procurement processes.

Reflecting on the current status of ADP implementation, Dr Salehuddin acknowledged weaknesses and called for an accelerated approach. “Our ADP implementation is lagging. We have instructed the officials to quicken the process.”

He also discouraged assigning multiple projects to a single project director, urging officials to adopt a more efficient and focused work ethic. “We have asked the officials to change their orientation, attitude, and to enhance their efficiency,” he added.

Dr Salehuddin further stressed the need for better coordination in project implementation to avoid delays and financial waste. He announced plans to address supply chain issues in upcoming meetings with concerned officials.

On data management, he instructed officials to collect and publish data accurately and promptly. Addressing potential reforms in the financial sector, the adviser said: “We will initiate necessary reforms immediately, including in the banking sector.” He said he would consult with experts to determine the best way forward.

“Decisions have been taken to accelerate the economy, and there is no vacuum in Bangladesh Bank. The central bank operates under established rules and regulations,” said the former Bangladesh Bank governor.

He acknowledged that the country is navigating an extraordinary situation, with the economy having experienced a slowdown, but expressed confidence that the situation is improving. 

“The economy is already picking up, and essential decisions have been made. I have provided directives and engaged with business leaders and commercial bank managing directors,” the adviser said, underscoring that the Bangladesh Bank operates smoothly with or without the governor’s direct involvement.

“Operations like RTGS and LC payment do not need governor’s decision,” the Finance adviser said.