Finance minister orders review of delayed, costly projects

The Bangladesh Development Projects Review Committee has been formed under the directive of Prime Minister Tarique Rahman to assess ongoing projects, reduce wasteful spending and ensure alignment with national priorities.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury confirmed that the committee will conduct a comprehensive evaluation of projects that have faced long delays or repeated cost escalations. He said the initiative aims to “eliminate wasteful spending and ensure alignment with the national interest.”

He added, "The prime minister's adviser on the Ministry of Finance and Planning, Dr Rashed Al Mahmud Titumir, is the convener of the committee." The committee will review projects that have been delayed for long periods or have seen repeated cost increases. This clearing of the balance sheet is essential to fulfil promises made to the citizens.”

The minister made the remarks after the first meeting of the Executive Committee of the National Economic Council for the fiscal year 2025–26, held at the Cabinet Division conference room in the Bangladesh Secretariat in Dhaka.

He said the committee’s mandate includes identifying which projects should be terminated, extended or redesigned, stating that the process is intended to remove ineffective projects and prioritise those that deliver measurable public benefit. “We have to be very careful because every Taka spent belongs to the people of Bangladesh,” he said.

During the ECNEC meeting, 19 projects were placed for consideration, but only seven were reviewed. Of these, some were approved while others were sent back for further scrutiny, reflecting a more cautious approach to public spending.

Rashed Al Mahmud Titumir said many past projects were initiated based on political considerations rather than economic viability, often lacking a clear return on investment. He stated that the new committee will assess whether such projects should continue or be discontinued.

He emphasised that the government is aiming to move away from political patronage in project selection and towards a system where public funds are used strictly for public welfare. He also noted concerns about rising operating expenses compared to slower growth in the Annual Development Programme, which represents capital investment critical to long-term economic growth.

“If the quality and implementation rate of the ADP do not increase, the national growth rate will continue to decline,” he warned, pointing to recent downward pressure on growth due to stagnant capital expenditure.

Titumir added that previous project spending often lacked accountability, with costs frequently increased without clear justification. He said the review process is intended to ensure that all projects align with national priorities and reflect the government’s commitments to the public.

The formation of the committee signals a policy shift towards stricter oversight of development spending, with a focus on improving efficiency, transparency and economic impact.