Finance Adviser Dr Salehuddin Ahmed on Tuesday said the government is moving forward with reforms to stabilise the banking sector, rationalise subsidies in the power sector, and strengthen revenue mobilisation, while remaining cautious about growing foreign debt under the IMF programme.
Briefing reporters after a meeting at the Secretariat, the adviser said syndicates and rent-seeking practices remain a challenge in the domestic market but stressed that enforcement measures have been intensified to reduce extortion and safeguard consumers.
Dr Salehuddin, however, admitted that extortion has increased across the country since August 5 last year, saying the interim government alone cannot control the menace without political commitment and an elected government in place.
The adviser said the problem has worsened in recent months. “Where previously one taka was being extorted, now it is one and a half or even two taka. After August 5, multiple groups became involved in extortion, while those who were active before are also still behind it. Many of those engaged in extortion are members of business organisations,” he said.
Dr Salehuddin observed that extortion is fueling price hikes. “This is one of the reasons why commodity prices are increasing. But it is not the direct responsibility of my ministry to control this. The interim government does not follow a ‘catch this person, catch that person’ policy,” he explained.
The adviser, however, expressed optimism that inflationary pressures will ease in the coming months. “By June next year, we expect inflation to come down to around 7 percent,” he said.
Dr Salehuddin noted that although the banking sector went through a difficult period marked by liquidity pressures and complications in opening letters of credit (LCs), the situation has eased.
“We are seeing greater stability now. LC-related barriers that disrupted imports last year are no longer acute. Weak banks are being supported to remain afloat, but we are not allowing irregularities to go unaddressed,” he said.
Process to recover laundered money progressing gradually: Finance Adviser
The adviser emphasised the urgent need to broaden the tax net.
“The National Board of Revenue (NBR) has already rolled out the National Single Window digital system, which is streamlining customs and taxation processes. For the first time, many powerful individuals who had previously remained untouched are receiving tax notices,” he said, adding that strengthening a culture of compliance is central to restoring fiscal balance.
Turning to the power sector, the adviser said subsidies have reached an unsustainable level.
“The government has already spent massive amounts to keep electricity affordable. It will not be possible to increase subsidies further. Power companies must now work to reduce their own costs and improve efficiency,” he said, indicating that future tariff adjustments would have to be more carefully managed.
Dr Salehuddin said that the government is reviewing pension reform models, including a “one pay, one pension” framework, but stressed that a universal pension system will take more time to materialise.
“It will be a gradual process, requiring strong financial backing and careful implementation,” he explained.
Commenting on the upcoming national election, the adviser observed that the political climate has been relatively calm.
“Major parties have expressed interest in contesting, which is a positive sign. The army, along with other law enforcement agencies, will play a critical role in maintaining law and order during the electoral process,” Dr Salehuddin said.
Finance Adviser stresses strengthening capital market to reduce bank dependency
He also stressed the importance of maintaining stability in the country’s foreign reserves by prioritising payments to international investors and curbing capital flight.
“Foreign reserves are lower compared to previous years, but the situation is not yet at a crisis level. Our commitment to honouring international payment obligations remains firm,” he noted.
The finance adviser concluded by urging transparency, accountability, and continued reforms across economic sectors. “Bangladesh still has policy space to steer the economy, but sustaining reforms is essential to protect public trust and strengthen resilience against external shocks,” Dr Salehuddin said.