Reforms must speed up

Bangladesh's economy might see a boom in the coming years if mega projects such as the Bay Terminal of Chattogram Port, the Matarbari Deep Sea Port and the Dhaka-Chattogram Elevated Expressway are completed on time, said BSRM Chairman Alihussain Akberali.

He underscored the need for taking proper economic reforms and prioritising projects by properly calculating the payback periods to avert debt traps.

He emphasised taking on some measures, including freeing the interest rate and making the currency rate flexible and the banking system strong to navigate 2024.

"Make laws so strict that none can take away any money from banks illegally under no circumstances," Akberali said.

The industrialist lauded the government for taking various mega projects, calling it brave.

"But from now onward, it needs to consider the payback period before initiating any mega project as well as during their implementation. Otherwise, we may fall into the debt trap."

Akberali says Bangladesh would have done better if it could take some steps long ago by gradually freeing up the interest rate as well as making the exchange rate flexible.

Regarding the slowdown faced by the economy in 2023, he said, "I think we were overconfident that our exporters would save us. Now, we are facing too much shortage of foreign exchanges."

"If reforms were put in place three to four years ago by slowly devaluating the currency and increasing the interest rate in phases, we might not face the current situation all of a sudden."

According to the BSRM chief, Bangladesh has huge potential and there is no reason for the country to look back.

"The only thing is that there has been no serious reform in the banking sector in the last three or four years against willful defaulters. The lack of strong steps to rein in willful defaulters led to the serious liquidity crisis."

Akberali thinks the new government can't slow down reforms, infrastructure development and digitalisation.

"Digitalisation in many spheres is urgent. Government organisations are aware of digitalising things and they are trying but the implementation is very slow."

He said the Awami League has been in power for 15 years but the land ownership document is yet to be digitalised.

He also expressed dissatisfaction over the long delays in implementing many important projects.

Ten years have passed but the ground-breaking for the Bay Terminal project has not been done, said Akberali, citing the delay of five to six years to sort out the land issue linked to the expansion project of Chattogram Port.

He thinks that Dhaka-Chattogram Elevated Expressway should have been the most priority project after Padma Bridge.

"The project will pay back within three years."

"Had the project been taken much earlier instead of turning the old two-lane into four-lane, it would have reduced the travel time and saved a huge amount of money."

Akberali applauded the government for taking up projects such as setting up economic zones but expressed displeasure for the delay in readying the sites.