Bangladesh Paying for Past Policy Errors: Finance Adviser

Finance Adviser Dr Salehuddin Ahmed stated today that Bangladesh continues to face the repercussions of corruption and flawed policies enacted during the previous Awami League regime, which have stifled foreign investments and slowed economic growth.

"Corruption and policy missteps in the past have cost us dearly," he remarked at the launch of the report Enhancing Saudi-Bangladesh Economic Engagement: Trends, Key Challenges & Long-Term Growth Prospects at the Foreign Ministry in Dhaka.

Dr Salehuddin highlighted how major foreign investors, such as Saudi Arabia's Aramco and South Korea's Samsung, were deterred by unfavourable policies.

"Samsung approached us but was not properly received and eventually moved to Vietnam. Such mistakes need urgent correction," he said.

The adviser emphasized that the interim government, with its one-to-one-and-a-half-year tenure, is committed to implementing meaningful reforms.

"We may have a short tenure, but we aim to pave a clear path for future administrations to follow and improve upon," he added.

The event, hosted by the Foreign Ministry, was attended by Foreign Affairs Adviser Md. Touhid Hossain was the special guest, with Foreign Secretary Md. Jashim Uddin presiding over the ceremony. Saudi Ambassador Essa Yousef Essa Alduhailan and other dignitaries also addressed the gathering.

Strengthening Ties with Saudi Arabia
Dr. Salehuddin underscored the significance of bolstering trade and economic partnerships with Saudi Arabia, a key ally.

"Our current trade volume with Saudi Arabia stands at $2 billion, but it holds enormous growth potential," he stated.

He revealed that Bangladesh has recently secured $1.6 billion from various sources, with an additional $700 million expected soon. However, he stressed that effective fund utilization and timely repayment remain critical challenges.

Stock Market Anomalies
Critiquing the stock market, Dr Salehuddin noted irregularities where some companies' share prices continue to rise despite non-operational factories.

"These anomalies need urgent attention to ensure market transparency and integrity," he remarked.

Investment-Friendly Reforms
Foreign Affairs Adviser Md. Touhid Hossain acknowledged the gaps in Bangladesh's investment climate.

"For years, we have claimed to be the most investment-friendly destination, but that hasn't always been the case. This reality must change," he said.

The interim government, he added, is working to create a more conducive environment for investors. "Saudi investors will now find favourable conditions here," he assured, encouraging them to explore opportunities in Bangladesh.

Touhid also emphasized the need to upskill the country's workforce to meet domestic and global demand.

"We lack skilled workers, not just for overseas opportunities but within the country as well. Enhancing skill-based training is imperative for sustainable economic development," he stressed.

Saudi Interest in Bangladesh
Saudi Ambassador Essa Yousef Essa Alduhailan expressed optimism about future collaborations, highlighting Aramco's interest in establishing an oil refinery in the Bay of Bengal.

"A refinery here could supply oil products to Bangladesh and neighbouring regions, including China and India," he said, adding that a maritime route between Chattogram and Jeddah or Dammam could be transformative for the region.

The ambassador also noted Saudi success stories in Bangladesh, such as the Red Sea Gateway Terminal's operation of the Patenga terminal, and expressed interest in the Matarbari deep-sea port project.

Reflecting on past challenges, he remarked, ''Between 2016 and 2018, Aramco sent delegations to Bangladesh three times but received no response. However, we are now focused on the future, not the past."

Foreign Secretary Md. Jashim Uddin, Foreign Secretary (East) Md. Nazrul Islam and Policy Exchange Chairman Masrur Riaz echoed the need for coordinated efforts to attract foreign investments and drive economic growth.