A forthcoming White Paper on Bangladesh’s economy highlights major concerns about the banking sector and capital flight. The report, compiled by an expert committee, alleges that political interference during Awami League rule allowed influential groups, like S Alam Group, to access questionable loans, with distressed banking assets projected to rise from Tk5.5 lakh crore in December 2023 to Tk8 lakh crore by June 2024. Non-performing loans surged to Tk2.85 lakh crore by September 2024. The committee recommends dismantling the dual regulatory oversight shared by Bangladesh Bank and the Financial Institutions Division (FID) to enhance governance.
The report also underscores an alarming trend of capital flight, citing illicit outflows of Tk98,000 crore in 2015 alone. It critiques tax policies, noting exemptions that contribute to a low tax revenue-to-GDP ratio of 7.5%, while exemptions remain at 6%. Additionally, the committee highlights concerns over data manipulation and calls for restructuring the Bangladesh Bureau of Statistics for credibility in economic reporting.
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