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There is hardly any well-functioning financial institution left in Bangladesh, as four-fifths of bank funds have already been siphoned off, Finance Adviser Dr Salehuddin Ahmed has said, citing an estimate by the International Monetary Fund (IMF) that up to US$35 billion is required to restore the banking sector.
"The IMF initially projected the cost at $18 billion, but after reviewing the seriousness of the situation, the amount was revised to $35 billion," he said on Saturday while addressing as a guest of honour at a book launch and discussion event at the CIRDAP auditorium in the capital.
The event was jointly organised by the Power and Participation Research Centre (PPRC) and Aloghar Publications to unveil the latest book by economist and PPRC Chairman Dr Hossain Zillur Rahman, titled "Orthoniti, Shashon O Khomota: Japito Jiboner Alekkho".
Dr Salehuddin, also a former governor of Bangladesh Bank, painted a grim picture of institutional collapse, noting that some banks have lost as much as 80 per cent of their funds. "If the total outstanding loan was Tk200 billion, Tk160 billion is already gone," he said, stressing, "There are hardly any functional institutions left."
He said that while changes in government occur, the same individuals often continue to dominate critical positions, blocking meaningful reform.
"The people themselves haven't changed. Some suggest removing everyone, but that's not practical. So we have to make them work -- sometimes through persuasion, sometimes with stern action," he added.
Calling for urgent structural reforms, Dr Salehuddin emphasised that without checks and balances, good governance cannot be established. "The powers of the prime minister and lawmakers are unchecked. Without reforming this political structure, no sectoral reforms will be effective." He also made it clear that lasting reform must come from a political government.
"Interim arrangements can help start the process, but long-term reforms require political legitimacy. A political settlement is essential," he said.
At the event, BNP Secretary General Mirza Fakhrul Islam Alamgir, another guest of honour, echoed similar concerns, calling the current state of governance a "complete breakdown."
"There is no control, no good governance anywhere, and the situation has not improved even within the police," he said.
Mr Fakhrul cited growing bribery as a sign of deepening institutional decay. "Earlier, a businessman had to pay Tk 0.1 million; now it is Tk 0.5 million," he said, adding that reform would take time but must begin without delay.
"It is not possible to bring reform overnight, but that does not mean we should remain idle. Nothing should be imposed -- we must urgently return to a democratic process," the BNP leader said.
He called for the restoration of representative democracy, asserting that only a genuinely elected parliament can carry out effective reform.
Fakhrul also flagged geopolitical risks, cautioning that the return of Donald Trump to the US presidency could pose economic threats to Bangladesh. "Trump's protectionist policies and tariffs might cause serious problems for us. We must be alert," he said.
Dr Hossain Zillur Rahman, chairing the event, remarked that the nexus of economy, governance, and power remains the most influential force shaping Bangladesh's future. "The people of this country have an indomitable will to move forward, no matter the obstacles."
Reflecting on recent political developments, he said, "From 2013 to 2025, we have seen how dominant governments tend to slip into authoritarianism and how the people have risen to resist and reclaim their power."
Speaking about his new book, Dr Zillur said it draws heavily from lived experiences and critical moments in the country's journey through democratic backsliding and grassroots resistance.
Economist Professor Dr Mahbub Ullah addressed the historic tension between power and economic development.
"It's the classic chicken-and-egg dilemma -- should power precede economy or vice versa? But history shows that power has always used hierarchy to entrench itself," he said.
Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), highlighted the lack of transparency in local development strategies. "Our development has reached a low-level equilibrium. It lacks sustainability because governance isn't inclusive or accountable," she added. M Humayun Kabir, president of the Bangladesh Enterprise Institute, and sociologist Khandakar Sakhawat Ali also addressed the event, supporting the call for structural reform and democratic renewal.
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