Staff Correspondent

Finance Advisor Dr. Salehuddin Ahmed stated that Bangladesh's banking sector requires an estimated US$35 billion for its reconstruction.

He noted that the International Monetary Fund (IMF) had initially estimated $18 billion, but the current assessment suggests double that amount is now needed.

Dr. Ahmed made these remarks on Saturday (July 26) at the CIRDAP auditorium in Dhaka, during the launching ceremony of the book 'Economy, Governance, and Power: An Account of Lived Life,' authored by Dr. Hossain Zillur Rahman, who also chaired the event.

Dr. Salehuddin highlighted the severity of the economic crisis, stating that when the new government took office last August, such an economic disaster was unprecedented globally.

He revealed that 80 percent of the funds in the banking sector have been embezzled. As an example, he explained that if a bank has Tk20,000 crore in outstanding loans, Tk16,000 crore of that amount has been siphoned off.

He lamented the near absence of sound financial institutions, asserting that not only have laws been violated, but the entire process has been destroyed.

Furthermore, those responsible for these illicit activities remain unpunished and, in their positions, with no changes having occurred.

"Many suggest dismissing everyone, but that is not feasible," he added. "Now, we have to work by coaxing and admonishing them."

Dr. Salehuddin emphasized the difficulty of establishing good governance, pointing out that even the Prime Minister lacks effective checks and balances, and Members of Parliament have little accountability. He stressed that without addressing these fundamental issues, any reforms undertaken would yield minimal results.

He concluded by stating clearly, "Reforms are needed not only in government institutions but also within political parties."