Bangladesh’s economy is showing signs of resilience and gradual stabilisation despite inheriting a fragile macroeconomic environment, Finance Adviser Salehuddin Ahmed has said.
Speaking on Saturday, Salehuddin said the current administration had taken over at a time of significant economic stress but was now seeing improved stability across key macroeconomic indicators. However, he cautioned that inflation remains highly sensitive and cannot be addressed through monetary policy alone.
“We inherited a fragile macroeconomic situation, but now there has been stability in the macro economy,” he said. “Inflation has increased and is very sensitive. It cannot be controlled by monetary policy alone — supply-side measures and market discipline are crucial.”
He added that excessive profiteering and hoarding could not be curbed solely through enforcement actions, stressing the need for cooperation from wholesalers, traders and retailers to stabilise prices.
Salehuddin was speaking at the publication ceremony of the seventh edition of the Banking Almanac at the CIRDAP International Conference Centre in the capital.
He urged policymakers, analysts and the media to work together to present a balanced picture of Bangladesh’s economic progress and challenges, warning that excessive negativity could undermine confidence and harm the country’s international standing.
“With continued cooperation, Bangladesh can move forward towards becoming a stronger and more respected economy,” he said.
The finance adviser said recent banking sector data showed both lingering stress and early signs of adjustment. Indicators such as capital adequacy, provisioning levels, credit growth, retained earnings and credit-deposit ratios suggested that corrective measures were gradually taking effect, even though economic conditions in the 2024–25 period remain more challenging than earlier phases such as 2010.
“Credit growth has moderated and risk recognition has improved in several banks,” he said.
He also emphasised the importance of responsible dissemination of financial data, saying selective sharing of relevant indicators — rather than entire data volumes — could support evidence-based analysis and help counter misinformation.
On monetary conditions, Salehuddin said lowering interest rates is a complex process involving treasury bill yields, bank deposit rates and overall liquidity management. Although treasury bill rates have declined in recent months, he said their full impact on market interest rates would take time.
Maintaining balance, he said, was essential, warning that excessive reliance on government instruments could divert funds away from banks and weaken financial intermediation.
Addressing inflation again, he said supply-side management, effective market monitoring and cooperation across the supply chain were crucial, noting that enforcement alone was insufficient to prevent hoarding or excessive profiteering.
Salehuddin said Bangladesh’s development progress had been cumulative, achieved through sustained contributions over decades. While challenges such as inequality, poverty and agricultural price distortions persist, he said the country had made notable economic and social gains.
Policy decisions, he added, must not be driven by populism or narrow interests, and fiscal and monetary policies must carefully balance competing demands to protect overall stability.
Despite criticism, he expressed confidence that ongoing reforms were laying the foundation for a more stable and resilient economy.
Finance Secretary Khairuzzaman Mozumder said the financial sector had passed through a crisis over the past year and a half but noted that conditions were improving, including the absence of problems related to letters of credit. He said several troubled banks were showing signs of recovery, while efforts were underway to repay depositors at distressed financial institutions.
Financial Institutions Division Secretary Nazma Mobarek described the Banking Almanac as a statistical handbook that could serve as an early warning tool for policymakers, researchers and stakeholders.
Bangladesh Bank Deputy Governor Nurun Nahar said the publication would support informed decision-making in the banking sector, while Bangladesh Association of Banks chairman Abdul Hai Sarker said interest rate reductions depended on government policy rather than banking associations.
The event was attended by senior officials from the finance ministry, Bangladesh Bank, commercial banks and the banking industry, along with editors and contributors to the Banking Almanac.
