Financial Advisor outlines key economic challenges for next government

Financial Advisor Dr. Salehuddin Ahmed today outlined several key economic challenges facing the next government, saying that expanding trade and industry, creating employment, and strengthening financial sector institutions will be major challenges.

He said, “If business does not expand, there will be no employment. And without employment, people’s purchasing power will remain weak. This is one of the major challenges.”

The advisor said this in response to various questions from journalists after presiding over a meeting of the Advisory Council Committee on Government Procurement at the Cabinet Division Conference Room at the Bangladesh Secretariat on Tuesday (February 10).

The Financial Advisor said that one of the main goals of the next government should be to revive business and industrial activities. Because employment creation mainly depends on a vibrant private sector. Dr. Salehuddin said that Bangladesh’s industrial base is still relatively small and the country is overly dependent on exports.

“We need to build our own industrial strength, especially small and medium enterprises,” he said. He added that inflation is still a concern and it cannot be tackled through monetary policy alone.

“Inflation is a multidimensional problem,” he said. We have tried to address it, but it requires more comprehensive measures. “On the banking sector, he said, steps have been taken to restructure the sector, but more difficult decisions will have to be taken ahead.”

The financial advisor praised the central bank governor’s recent initiatives but admitted that they were not enough. “Credit flow is still limited and confidence has not fully returned, although deposits have started to increase recently,” he said. He stressed the need to develop the capital market to reduce over-reliance on banks for business financing.

“If we cannot develop the capital market, then trade and commerce will not grow by relying solely on banks,” he said. Equity participation through capital markets and a strong bond market, especially for the private sector, are essential.

He also noted that there are legal complexities and court-related challenges in regulatory reform. The financial advisor described the insurance sector as another sensitive sector, saying that it needs improvement. He noted that despite efforts, progress is still limited. He identified the energy sector as a major long-term challenge and highlighted the importance of increasing domestic exploration.

He added, “We need more drilling activities, including offshore areas, while we have not yet been able to develop solar energy to the extent that it needs to be developed.