Govt working to lift economy from edge of ditch: Salehuddin

It is the main duty of the interim government to lift the economy from the edge of a ditch, Finance Adviser Dr Salehuddin Ahmed said today (25 February).

"After taking charge last year, we gave due attention on recovering the economy which was on the edge of a ditch. The devastation of the economy was so deep that none can perceive its intensity unless delving into it," he said in an interview with BSS.  

The adviser said for ensuring a recovery from that situation, directives were given immediately to the Bangladesh Bank, all the banks especially the troubled banks, and other financial institutions to make proper scrutiny before giving further approval for giving loans.

Elaborating the strategy for recovering the economy, Dr Salehuddin said soon after assumption of office, they asked the central bank governor to address the misgovernance at the concerned banks through exercising authority.

In continuation of this, he said the Bangladesh Bank had brought changes into the boards and managements of many banks including in the posts of Managing Directors and Chairmen. 

"Such efforts are still going on while it will take some more time to accomplish the task," he said.

Besides, the adviser said some restrictions were imposed on disbursing new loans and opening up of LCs in order to keep intact the state on the balance of payment.

Apart from these, Dr Salehuddin, also the former central bank governor, said changes were brought into the management of the Bangladesh Development Bank Ltd (BDBL), BASIC Bank, Investment Corporation of Bangladesh (ICB), Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh House Building Finance Corporation (BHBFC).

He said auditors have already been appointed at six banks and they would determine the updated figures on the Non Performing Loans (NPLs).

Apart from these, they would determine the quality of loans of each bank, asset quality, and liabilities. Then they will take steps on distressed loans.

"Due to such measures, the banking sector on the whole is currently performing better while the capital market is also faring better. On the other hand, the NBR is being digitalized as well as the income tax and customs procedures are also being simplified," he said.

The finance adviser also said due to such efforts, income tax collection through online has increased side by side income tax collection in big cities like Dhaka and Chattogram is also increasing.

He added that the public servants and other stakeholders have given a very good response to such initiatives.