Economic governance needs to undergo major changes

Speakers at the Economic Reform Summit 2025 have called for deep structural changes in Bangladesh's economic governance, stressing deregulation, restoration of central bank independence, and a shift from bureaucratic dominance to private sector-led reform.

Addressing the event as chief guest on Monday at a city hotel, BNP Standing Committee member Amir Khasru Mahmud Chowdhury said his party would abolish the Financial Institutions Division (FID) under the Ministry of Finance and grant "full independence" to Bangladesh Bank if elected, arguing that meaningful reform is impossible while bureaucratic control remains entrenched.

He criticised the FID, saying it was designed "to control state-owned banks, place loyalists on boards, and enable looting," insisting it has no role in serving public interest.

"The private sector must not be held hostage by excessive bureaucracy. Policymaking should belong to policymakers, and the bureaucracy's role should be implementation - nothing more," he said.

The two-day summit was jointly organised by Nagorik Coalition, INNOVISION, Fintech Society, BRAIN, and Voice for Reform, with support from ActionAid and bdjobs.com.

Mr Khasru said the BNP intends to expand self-regulation by transferring certain regulatory powers to trade bodies where feasible, citing his tenure as commerce minister when UD certificates were shifted from the Export Promotion Bureau to BGMEA to curb graft and delays.

He added that political contestation must return to democratic processes. "We must take our demands to the people and secure their mandate, and then enact reforms in parliament - not through chaos or confrontation," he said, stressing that the success of reforms depends on rebuilding tolerance in national politics.

He also called for full-scale digitalisation of state services to reduce harassment and corruption. "In developed countries, utility payments, passport renewals and public services are completed online. Bangladesh must follow that path through a2i to eliminate discretionary abuse."

Calling for the "democratisation of the economy," Mr Khasru argued that the existing model "has only benefited a narrow segment" and must be redesigned to ensure universal participation, shifting from welfare-style transfers to income generation initiatives, citing Thailand's "One Product, One Village" model.

During panel discussions, speakers highlighted vulnerabilities across investment, energy governance, and labour markets.

Dr Nakibur Rahman, Jamaat-e-Islami USA spokesperson and finance academic, said Bangladesh faces a high equity risk premium due to corruption, high bond rates, red tape, overlapping regulations, and outdated laws.

Prof M Tamim, energy expert, warned of a "severe energy crisis" caused by reliance on rental and quick power projects over domestic energy exploration, costing nearly US$30 billion.

Prof Rashed Al Mahmud Titumir, Dhaka University, said inflation has eroded purchasing power, pushing another three million people toward extreme poverty, while one in three graduates remains jobless.

"Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, said investment lags due to the absence of a national investment policy and uncoordinated strategies for domestic and foreign capital."

Jyoti Rahman, Counterpoint executive editor, called macroeconomic stabilisation a precondition for reform, citing untapped female labour and weak port connectivity.

Asif Khan, CFA Society Bangladesh president, urged a shift from costly mega-projects to soft infrastructure and high-impact capital deployment in sectors unattractive to private investors, suggesting Vietnam's private-sector-driven development model.

Other speakers included Planning Commission member Dr Monzur Hossain, EPB vice-chairman Mohammad Hasan Arif, accountant Snehasish Barua, and Chaldal CEO Wasim Alim.

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