BNP lawmaker AM Mahbub Uddin Khokon has proposed withdrawing all existing banknotes from circulation and requiring people to deposit their cash in banks within one or two months, arguing that holders of undeclared money should be allowed to legalise it by paying a 25 per cent tax.
Speaking during the general discussion on the proposed 2026–27 national budget in Parliament on Sunday, the Noakhali-1 MP said such a measure would bring large amounts of cash into the banking system, improve liquidity and encourage fresh investment, helping revive the economy.
Khokon said Bangladesh needed to overhaul its financial system to curb money laundering, restore public confidence in banks and stimulate investment. He argued that existing efforts had failed to recover illicit funds transferred abroad.
He said successive governments had spoken about tackling money laundering since independence, but little of the laundered money had been recovered. “Once money enters the global financial system, there is virtually no opportunity to bring it back,” he said.
The BNP lawmaker argued that people keep their wealth where they feel secure, comparing the issue with families choosing to store gold and cash at home when they trust their surroundings. He said Bangladesh should reform its financial system to encourage people to keep and invest their money within the country.
Referring to financial centres such as Singapore, Dubai, Canada and Thailand, he said Bangladesh should adopt more effective policies to retain domestic capital.
Khokon also questioned the need for the large number of banks operating in the country. “There is no need for so many banks. It seems that whenever someone becomes influential or enters politics, they want a bank or a leasing company,” he said, calling for unnecessary financial institutions to be closed.
He alleged that public confidence in the banking sector had weakened, leading more people to keep cash outside the formal financial system.
The MP also linked economic stability to employment, saying improving law and order would be difficult without creating jobs for millions of unemployed young people. “We cannot expect a better law-and-order situation while leaving millions of youths unemployed. Employment generation must be a priority,” he said.
Despite highlighting weaknesses, Khokon described the proposed budget as a forward-looking plan for the country's development. He said measures such as Family Cards and Farmers' Cards would channel financial support to grassroots communities and increase economic activity.
He noted, however, that a significant share of the proposed Tk 9.38 trillion budget would be spent on government operations, salaries, pensions, infrastructure maintenance and interest payments on existing loans, leaving comparatively limited room for development spending.
The lawmaker also defended the government's management of the economy, saying the administration inherited a financial system weakened by widespread looting and mismanagement. He added that the relatively restrained criticism of the budget in Parliament reflected the difficult economic conditions facing the government rather than an absence of shortcomings.
