Former finance adviser Salehuddin Ahmed said on Friday that Bangladesh's interim government was unable to carry out many important reforms because of its limited authority and lack of a political mandate, forcing it to prioritize economic stabilization over deeper structural change.
Speaking as the convocation speaker at the 58th graduation ceremony of the Institute of Business Administration at the University of Dhaka, Salehuddin said the administration inherited an economy in severe distress when it took office.
He said the immediate task was to repair a system that was close to collapse, rather than launch sweeping new reforms.
The event was held at the Bangladesh-China Friendship Conference Center in Dhaka, where 365 graduates from BBA, MBA, EMBA and DBA programs received degrees.
Salehuddin said many people ask what the government achieved in 18 months, but warned that major change cannot happen overnight.
He described the administration's approach in two stages: first repair, then reform. According to him, instability had spread across nearly every major sector at the time, including banking, the capital market and revenue administration. Foreign exchange reserves had fallen sharply, while the current account and overall balance of payments were in negative territory, though he said some stability has since returned.
He said the biggest obstacle was the absence of political legitimacy to push decisions through at the desired pace. In the banking sector, he blamed long-standing irregularities, political influence and weak laws for the crisis, arguing that administrative action alone cannot fix the system without legal reform.
He also said some banks required large financial support and noted that recovering money laundered abroad remains difficult, although technology and international cooperation have improved the chances of tracing assets faster than before.
Salehuddin also pointed to weak governance in both the public and private sectors, saying poor accountability has led to waste and chronic inefficiency. He cited prolonged project delays, concerns over the energy sector's failure to invest enough in new gas exploration, and the weak competitiveness of industries that have long depended on state incentives.
He added that Bangladesh now faces growing pressure from shifts in global trade, including US trade policy, competition with China and changes in tariff regimes.
Despite the challenges, Salehuddin said Bangladesh still has strong potential if it can improve governance, efficiency and accountability. Referring to South Korea and Vietnam, he said countries starting from similar conditions had moved far ahead and Bangladesh could do the same.
Addressing graduates, he said rapid global change and shrinking opportunities mean there is no substitute for skills, knowledge and hard work.
Dhaka University Vice-Chancellor ABM Obaidul Islam, the chief guest at the ceremony, urged graduates to provide ethical and humane leadership in addition to professional excellence. He said recent student-led movements in the country had shown that change becomes inevitable when driven by clear vision and honest intent.
The university awarded degrees to 116 BBA students, 126 MBA students, 122 EMBA students and one DBA student. Twenty-six graduates were placed on the Director's Honor List, and two received gold medals.
