Three advisers defend pace of reforms, cite challenges

Three advisers of the interim government have said that the criticism levelled against their reform efforts is not fully justified, arguing that one and a half years is an insufficient time to implement sweeping changes. 

They believe this period is only enough to initiate the reform process and that genuine, sustainable reforms require a pre-existing national consensus. The advisers, however, expressed confidence that the next elected government would continue the work they have started.

These views were shared at the book launch of "Bangladesh's Political Economy," a compilation of essays by Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan. The book compiles 43 of Fouzul's essays written between 2009 and 2025 on topics ranging from his birthplace Sandwip to energy, education, health, politics, economics and governance.

18 months is not enough for significant economic progress. There are the long lead times for large-scale projects, such as purchasing railway locomotives, which can take two to two and a half years.

Muhammad Fouzul Kabir Khan Power, Energy and Mineral Resources Adviser 

Finance Adviser Salehuddin Ahmed, Environment Adviser Syeda Rizwana Hasan, and the author himself addressed the event held at the Bangladesh Institute of Development Studies (BIDS) in the capital this evening (7 September). The ceremony was attended by government officials, economists, academics, and bankers.

The advisers' remarks came in response to a question from Dr Zahid Hossain, former lead economist at the World Bank's Dhaka office, who criticised the "unnecessary policy practices" that have infiltrated the economy. Dr Hossain asked Fouzul if the interim government had managed to curb these practices or had, in fact, added to them.

Advisers' response to criticism

Finance Adviser Salehuddin emphasised the link between economics and politics, defining the latter as having good intentions, a cooperative outlook, and a desire to work for the country. "We are trying to work for the country. It's not that nothing is happening," he said, noting that the criticism they face often makes them feel "redundant." He highlighted the reduction of boilerplate text in budget speeches as one example of their work.

Salehuddin called for more constructive criticism, lamenting that critics often focus on the "half-empty" part of the glass without acknowledging the progress made. "We want to hear about the good discussions too," he stated, adding that he hopes the government can "leave some footprints" for the next administration to build upon.

Environment Adviser Rizwana also defended the government's pace on reforms, calling the political economy "not very pleasant." She gave the example of resistance to the initiative to split the National Board of Revenue (NBR) into two divisions, stressing that such reforms are difficult in a mere 18-month period. 

Rizwana also noted that a lack of prior consensus on reforms, as seen during the One-Eleven era, means they often fail to be sustained.

Reforms and challenges

Adviser Fouzul conceded that while unnecessary policies have not been fully stopped, they have been reduced, and "economic practices have increased" within the government. 

He credited this shift with stabilising the foreign exchange rate and inflation. He argued that 18 months is not enough for significant economic progress, citing the long lead times for large-scale projects, such as purchasing railway locomotives, which can take two to two and a half years.

Fouzul also spoke frankly about the pervasive corruption in ministries like power, energy, and railways, blaming "the person in the chair" and the "system," rather than the position itself. 

He said the previous government had "banished competition" from public procurement, causing immense loss. He cited the example of fuel oil procurement, where the number of participating companies increased from just four to 12, cutting the premium cost by 35% and saving Tk1,500 crore. 

Fouzul also mentioned that LNG is now being procured at a lower price ($11-12 per unit) compared to the previous $16. He claimed the interim government has saved Tk45,000 crore by cancelling wasteful projects.

Mostofa Sarwar Farooki, cultural affairs adviser, Matiur Rahman, editor of Prothom Alo, Hossain Zillur Rahman, former caretaker government adviser, MA Taslim, economist, and Ainun Nishat, a water expert, also attended the programme. AK Enamul Haque, director general of BIDS, moderated the session.