Salehuddin Ahmed warns next government of ‘significant’ economic hurdles

Finance Adviser Salehuddin Ahmed has outlined a series of critical economic challenges awaiting the next administration, warning that revitalising trade and generating mass employment must remain at the top of the national agenda.

Speaking to reporters after chairing a meeting of the Advisers Council Committee on Government Purchase at the Secretariat on Tuesday, Salehuddin Ahmed emphasised that the stability of the economy depends heavily on the expansion of the private sector.

The finance adviser noted that if business does not expand, employment will not be created, leaving the purchasing power of the general public weak—a cycle he described as one of the most pressing issues for the incoming government.

Salehuddin Ahmed highlighted that Bangladesh currently possesses a relatively narrow industrial base and remains excessively dependent on a few key export sectors. To build genuine industrial strength, he argued that the country must pivot toward supporting small and medium enterprises (SMEs), which are more labour-intensive and essential for job creation.

He further cautioned that inflation remains a multidimensional concern that cannot be managed through monetary policy alone, requiring broader coordination across various sectors of governance.

The banking sector also remains a sensitive area where, despite recent efforts to reorganise institutions, difficult decisions are still required. Salehuddin Ahmed acknowledged the recent initiatives by the central bank governor to restore discipline but noted that credit supply remains limited and full public confidence has yet to return.

He stressed the urgent need to develop the capital market specifically through a stronger bond market and equity participation—to reduce the economy’s over-reliance on bank-based financing for long-term industrial projects.

Addressing the energy sector, Salehuddin Ahmed identified fuel security as a major long-term challenge that requires immediate domestic exploration. He called for increased drilling activities, including offshore initiatives, and expressed concern that solar energy has not yet been developed to its necessary potential.

As the 12 February general election approaches, the finance adviser noted that while the interim government has stabilised the foundations of the economy, the next administration will need significant political commitment to carry these complex reforms forward.