Net is cast, now time to reel in money launderers: Governor

Acknowledging the challenges in recovering substantial sums of money laundered out of the country, Bangladesh Bank Governor Ahsan H Mansur has said the groundwork for retrieval efforts is well underway.

"The net has been cast, and now it's just a matter of reeling it in," Mansur said at an economic summit hosted by Bangla daily Bonik Barta at the Sonargaon Hotel yesterday.

Bringing down inflation on an average takes 12 months. Our policy rate has been increasing for four months. We'll have to wait eight more months.

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Ahsan H Mansur, Governor, Bangladesh Bank

He disclosed that international cooperation is advancing, with representatives from the US due this week and delegations from the UK, the World Bank, and Singapore expected to follow.

Addressing the state of Bangladesh's banking sector, Mansur described it as one of the most affected sectors in recent years, warning that rapid solutions are unrealistic. 

He cited the case of a family taking Tk23,000 crore out of a bank's Tk27,000 crore in assets, underscoring the magnitude of the sector's vulnerabilities.

"If immediate reforms or solutions are demanded, I would have to leave my job," he remarked, adding that a full restructuring of the banking sector may require 2-3 years.

Mansur assured that no bank closures are planned and that the central bank is providing liquidity support to weaker banks to ensure they meet withdrawals, with all other issues expected to be gradually resolved. 

He outlined plans for audits involving both local and international experts to assess banks' asset quality comprehensively.

While some banks may require recapitalisation and others may need to pursue mergers, Mansur said, expressing optimism about bringing the sector to a stable footing within the next few years. 

He confirmed that specific laws are being developed to facilitate these restructuring efforts.  

The 3rd Bangladesh Economic Summit 2024 was themed "Inequality, Financial Crimes, and Healing Bangladesh's Economy". Around 400 guests, including government officials, economists and university faculty, attended the event.

'8 months to tame inflation'

Ahsan H Mansur projected that it will take an additional eight months to bring inflation to a targeted level under current economic measures. "We have reviewed data from developed countries like the US and reached this conclusion."

The governor warned, "Although we won't go into recession, the growth can become slower. We would have faced a situation like Sri Lanka, but that did not happen."

Stating macroeconomic stability as a must to bring investment, the governor further said it is not possible to increase investment for him or anyone right after taking responsibility.

He affirmed that the central bank had not printed a single taka in the last three months. "We did not sell any dollar from our reserve, either. There is no shortage of dollars in the market."

Mansur at the event clarified that the appointment of a receiver for Beximco does not mean the company is closing, but rather it is being revitalised. 

He said the government has been paying Beximco's wages for the past few months, and the receiver's role is to ensure the company remains operational and prevent the loss of export. 

'Millions syphoned on 5 Aug'

At the event, newly appointed Commerce Adviser Sk Bashir Uddin said millions of dollars had been syphoned off the country even on 5 August.

On that day the Awami League government was ousted and Sheikh Hasina fled the country.

"The freedom that we achieved in exchange for 2,000 lives can't go astray," the adviser said. 

"Sometimes I feel ashamed of identifying myself as a businessman due to the politicisation of this profession. I'll try my best to ease the cost of doing business in the country," he added.

'Trying to automate most services'

In his address, Commerce Adviser Salehuddin Ahmed said the government is trying to automate most services, noting that despite the vision of a Digital Bangladesh, the country has yet to achieve full digitalisation. 

"Without transparency and accountability, progress is not possible," he noted.

The adviser mentioned that they have been entrusted with significant responsibilities and have devised three plans: short-term, medium-term, and long-term. 

"We can execute the short- and medium-term plans, while the long-term plans will be carried out by the elected government," said the economist.

The current government aims to leave a "lasting footprint" that future administrations can build upon, he said, adding that this will help ensure public satisfaction.

"This way, the political government will be pressured by the people to follow through on these initiatives," he added.

'Jewellery filled with gold'

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan said while the official figures show minimal gold imports, the jewellery market is overflowing with gold. 

Despite questions raised about this inconsistency, the NBR chairman said he didn't have any explanations for the discrepancy.

The chairman said when crafting policies, the NBR always prioritises national interests. This is why, in the past three months, the government has provided significant tax and duty relief on essential goods. 

"Even if such policies reduce our revenue collection, we place the nation's interest above all else," he affirmed.

However, he expressed concern over the continued practice of producing false affidavits, particularly in land transactions, which he deemed harmful to the economy. 

"This practice needs to be eradicated," he said, stressing that it is a national embarrassment. 

He urged for genuine transaction records to be maintained, vowing to reform discriminatory laws and ensure that tax exemptions are not granted through favouritism or personal connections.

'Monetary policy choking private sector'

Abdul Awal Mintoo, chairman of National Bank and former president of FBCCI, said the contractionary monetary policy is suffocating the private sector, leading to a lack of investment and job creation. 

"This policy is choking the private sector, and as a result, there is no growth in investment or employment," remarked Mintoo, who is also vice-chairman of the BNP.

He also said there is significant inequality in society, and to reduce this, wealth must be generated. "However, those who generate wealth for the country do not have the power to distribute it. On the other hand, a certain group controls the distribution and exploits it for their own gain." 

To address this, Mintoo said the country needs stronger social capital and proper enforcement of the law, pointing out that there is a lack of trust in society, with people viewing each other as adversaries.

"In our society, trust is lacking, and people view each other as adversaries. Political figures see those working in economics as their opposition, and similarly, economic experts share this sentiment," added the industrialist. 

He added that a thriving economy requires good governance, and he stressed that a functioning democratic government is essential for achieving economic prosperity. "Without a fair and democratic government, it is impossible to achieve a strong economy."

BNP will allocate 10% of GDP on health, edu

Speaking at the summit, BNP Standing Committee member and former commerce minister Amir Khasru Mahmud Chowdhury, said the BNP will allocate 10% of the GDP for health and education if it forms the government.

"We as a party have decided two things very clearly- we will allocate 5% of the GDP for health and 5% for education. This is our decision," Amir Khasru said.

He explained that providing citizens with universal health care would improve their health, enabling them to contribute more effectively to the nation. 

He also mentioned that Bangladesh has failed to invest adequately to reap the demographic dividend, and that low investment in health and education is reducing people's purchasing power.