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Bangladesh’s financial and energy sectors were “devoured” by the past government, economist Debapriya Bhattacharya alleged on Saturday, citing widespread mismanagement and corruption.
“Bangladesh has two kidneys: one is the financial sector, and the other is the energy sector. Those who devoured the energy sector are the same ones who devoured the financial sector,” he said at a seminar titled ‘Policy Dialogue on Financial and Economic Reforms in Bangladesh’ in Dhaka’s Mohakhali.
Mr Debapriya, a distinguished fellow at the Centre for Policy Dialogue, added: “People were placed inside the central bank on monthly allowances.
“They printed money and falsified reserve figures. Additionally, those who were unfit to run banks were granted banking licenses.”
He noted, “We are stuck in a middle-income trap. If the state is not reformed, minor reforms will be ineffective.
“Furthermore, without restoring economic stability, it will not be possible to move toward meaningful reforms.”
Empasising the need for an authentic development narrative, Mr Debapriya said, “Growth data and statistics during the previous government’s tenure were severely flawed.
“The data was politicised, and growth was shown sans private investment, while tax-to-GDP ratio remained stagnant.
“With no tax growth or investment, in the pursuit of visible development, social development, healthcare, and education were severely undervalued.”
Finance Adviser Dr Salehuddin Ahmed, Bangladesh Securities and Exchange Commission (BSEC) Commissioner Farzana Lalarukh and BRAC Bank CEO Selim R F Hussain also addressed the seminar.
BRAC University Vice-Chancellor Syed Ferhat Anwar delivered the concluding remarks, with acting Dean of BRAC Business School Dr Mohammad Mujibul Haque moderating the event.