CPD presses for fixing financial sector

At a CPD-hosted dialogue on Wednesday in a city hotel, experts and participants outlined key recommendations for the interim government led by Professor Muhammad Yunus, focusing on the significant challenges facing Bangladesh's financial sector. 

CPD fellow Professor Mustafizur Rahman identified the financial sector as a major hurdle, citing concerns over job creation, investment and import capabilities. 

He emphasized that overcoming these challenges is vital for the country's progress during the interim period. CPD Executive Director Fahmida Khatun highlighted the increasing disparities within the country, noting the mismatch between economic growth and widespread discrimination.

She pointed out that while some groups benefited politically and economically, many others were left behind, exacerbating inequality. 

Among the key issues discussed were the ongoing liquidity crisis, rising non-performing loans (NPLs), and the failure to control inflation. These problems have been compounded by inadequate government revenue collection and excessive borrowing from the banking sector. 

The dialogue stressed the need for the interim government to address these structural weaknesses urgently. The banking sector in Bangladesh is currently in turmoil, with bad loans reaching an all-time high of Tk1.82 trillion. The situation is further complicated by political interference in bank management, which has led to poor governance and financial instability.