Dr Wahiduddin Mahmud, the Planning Advisor, revealed that a substantial amount of money is being printed to safeguard the country’s banking sector.

He made the remarks while speaking at the iftar gathering of the Development Journalists Forum of Bangladesh (DJFB) on Monday.

He emphasised the critical situation facing banks and the government’s ongoing efforts to protect them.

The event, held at the NEC conference room in Sher-e-Bangla Nagar, Dhaka, was attended by DJFB President Hamid-uz-Zaman and moderated by General Secretary Abu Hena Muhib.

Dr Mahmud addressed the growing challenges of maintaining stability in the banking system, acknowledging that safeguarding the banks has become an increasingly difficult task. He explained that the government is working tirelessly to keep them afloat, though the situation remains dire.

Additionally, he pointed out a significant decrease in the use of hundi (illegal money transfer systems), which has positively impacted remittance inflows. He also mentioned a reduction in money laundering activities, although its tangible effects remain unclear. While optimistic, Dr Mahmud stressed that a comprehensive roadmap for long-term recovery and stability is needed, which cannot be achieved within a one-year framework.

On foreign investment, Dr. Mahmud expressed concerns, noting that the current economic environment would likely deter foreign investors. Despite this, he highlighted a positive trend in export earnings and a decline in the prices of goods, suggesting some resilience in the economy.

The Planning Advisor also emphasised the importance of transparency in government activities, particularly within the Planning Commission. He criticised the economic strategies of the previous government, warning that the country was on the brink of economic collapse due to rampant money printing, money laundering, and depleted reserves. According to Dr Mahmud, these issues left the banking sector in a precarious position, with banks nearing insolvency in the final stages.

Dr Mahmud’s statements reflect the gravity of the economic challenges Bangladesh faces and the critical need for strategic planning to steer the country toward financial stability.