New finance minister, others brace for tough job ahead as office term begins today

The new finance minister, Abul Hassan Mahmood Ali, steps into his office today with pressing economic and financial challenges demanding immediate attention.

On his inaugural working day, he is expected to hold a meeting with four secretaries of his ministry to assess the nation's current economic landscape, pinpoint weaknesses, and strategise on methods to address them.

To bring the new finance minister up to speed, a joint briefing was prepared by the ministry's four divisions — Finance, Financial Institutions, Internal Resources, and Economic Relations.

Despite Bangladesh's economic growth over the past 15 years, the new minister faces significant challenges ahead. These include tackling money laundering, recovering huge non-performing loans, enhancing revenue generation, and ensuring transparency in project expenditures.

Finance Minister Mahmood Ali already informed the finance division officials that he plans to be at the office early in the day.

During the meeting with the secretaries, the new minister aims not only to gain insights into the current weaknesses of the country's economy but also to seek opinions from the secretaries on the essential steps to address these issues, said finance division officials. 

Utilising information and feedback, the minister intends to formulate necessary plans to steer the economy back on track.

What will be on the meeting's agenda?

The Finance Division's briefing for the minister will highlight the challenges hindering control over inflation, declining foreign exchange reserves, and maintaining exchange rate stability.

An official from the macroeconomic department of the Finance Division told TBS that Finance Division Secretary Md Khairuzzaman Mozumder will provide the minister with a comprehensive briefing on the apparent challenges and weaknesses of the economy and the context in which the current situation has unfolded.

"The finance division will brief the minister on its strategies to tame inflation, and provide information regarding the factors contributing to the budget deficit, as well as updates on the exchange rate and foreign currency," said the official.

The Financial Institutions Division will present the initiatives to amend various laws in banking reform and the current trend of default loans. 

The banking secretary will brief the new minister about the time-bound action plan signed by the Bangladesh Bank with the banks to bring down the non-performing loans of the state-owned banks under 10% by 2026.

An official of the Financial Institutions Division told TBS that the Bank Company Act has been amended to bring about necessary reforms and reduce defaulted loans in banks. Initiatives have been taken to amend more than a dozen other laws, including the Bankruptcy Act. These matters will be discussed in the meeting with the finance minister.

An official of the National Board of Revenue (NBR) said the secretary of the Internal Resources Division and the NBR chairman will outline the present revenue collection target and the collection status. They will highlight the decline in revenue collection due to a decrease in imports.

The Economic Relations Division has prepared a report for the minister, detailing all received and promised loans from various development partners.

After being re-elected for the fifth time, Prime Minister Sheikh Hasina has said keeping the economy on track is the main challenge for the new government.

Finance Minister Mahmood Ali at his residence on Friday told reporters that the country's economy is under multifaceted pressure. 

"First of all the overall economic weaknesses will be identified. All kinds of initiatives will be taken to bring stability to the economy including prevention of money laundering, and banking sector reforms," he said.

Mahmood Ali said, "Economic issues are complex and taking them lightly will not be good for the country. I myself come from a diplomatic background and it would be unwise for me to comment on these issues abruptly. But I can say this, I will work with everyone to face the challenges head on and form a strong economic structure."

Other ministers, state ministers to join office today

Other ministers and state ministers of the newly formed government are expected to commence their duties today in their respective ministries, intending to formulate the action plan for the next five years on the first working day.

Food Minister Sadhan Chandra Majumdar told The Business Standard that he will start work today by making a plan to ensure food security for the next five years.

Officials of the Ministry of Commerce said State Minister for Commerce Ahsanul Islam Titu will arrive at the ministry around 10 am today. On the first day, he will exchange greetings with officials including the secretaries and get an idea about the commodity market.

Besides, officials of the ministry have prepared to brief the state minister about the steps that have already been taken to keep the supply of essential items steady and prices under control during the upcoming Ramadan. Progress with various countries on export situation and free trade agreements will also be highlighted.

State Minister Ahsanul Islam committed to initiating efforts to curb the manipulation of imported products. His goal is to ensure market prices of consumer goods are affordable for the public by holding large corporations accountable.

Environment, Forest and Climate Change Minister Saber Hossain Chowdhury is expected to join his ministry office today as well.

By inducting Saber Hossain into her cabinet and giving him the ministry, PM Hasina signalled her new government is going to make climate change a core issue of her diplomacy.

Saber is a known face globally for his engagement in global efforts on climate change and parliamentary affairs.

Saber Hossain Chowdhury told TBS, "After introductions on day one, I will dive deep into the ministry's operations. I would like to inquire about the challenges we are currently encountering and explore ways to enhance the efficiency and suitability of the various wings and units in terms of their structure and effectiveness.

"Throughout the first week, my approach will remain focused on listening and engaging with various stakeholders to gather insights from as many perspectives as possible."