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He said the situation highlights a broader failure to pursue meaningful reform. If reforms are delayed further and pushed into a Five-Year Plan, the approach would be misplaced.

“Unfortunately, although I am also a member of that planning committee, I must say that now is the time for consolidation and reform in order to move forward,” he said.

Without reforms, including stronger revenue generation, better public spending and balanced deficit financing, he asked where the economy would go.

He also referred to findings in a white paper on the economy published by the interim government, which highlighted how deals were struck between politicians and businesspeople, especially around the Prime Minister’s Office.

Businesspeople observed such arrange-ments and thought, “Why shouldn’t I have a share in this?” he said, adding that some then tried to cut transaction costs by becoming directly involved, including awarding contracts to family members. Eventually, some even entered parliament themselves.

On the capital market, he suggested including not only multinational companies but also state-owned enterprises.

This, the economist said, could achieve two goals at once: raising funds in the short term, even if it feels like selling family silver, and strengthening the quality of listed shares to make the market more vibrant.

Researchers, business-people, economists, trade analysts and students from home and abroad took part in the discussion, which was moderated by Selim Raihan, executive director of Sanem.

‘BANK DEFAULT NOW EMBEDDED IN FINANCIAL SYSTEM’

At the session, Professor Rehman Sobhan, chairman of CPD, said banking reforms have been discussed since the time of President Ziaur Rahman, yet major defaults began then and have continued through successive governments.

Although it was once suggested that defaulters should not contest elections, laws were later introduced allowing them to do so if they made a 5 percent down payment and rescheduled loans.

This has resulted in a large group of defaulters in parliament who, he said, help block meaningful reform.

The CPD chairman added that bank default has now become embedded in the structure of the financial system and cannot be addressed simply by targeting a few crony capitalists.

He said legislation alone is not enough. Reforms must be translated into operational measures implemented by the bureaucracy, with outcomes monitored on the ground.

Prof Rehman Sobhan added that an active opposition should work with civil society to act as a watchdog over reform implementation. Ultimately, he said, the government must show genuine intent and build accountability from the Prime Minister’s Office down to the field level.

He said the ultimate test of accountability lies in the government’s willingness to subject its performance to a free, fair and inclusive election.

Mohammad Muslim Chowdhury, former Comptroller and Auditor General of Bangladesh, said that although banks such as Sonali, Janata, Agrani and Rupali were converted into public limited companies two decades ago, they continue to function largely as extensions of the government.

He suggested that these banks should be brought under a genuine corporate structure, merged if necessary, and eventually listed on the stock exchange after a thorough review of their asset quality and balance sheets.

He also called for bringing the Financial Institutions Division (FID) under the regulatory oversight of the Bangladesh Bank to prevent misuse of authority and strengthen supervision.

He further said the total number of banks should be reduced, with particular attention to those with weak balance sheets and negative net worth, through liquidation or other corrective measures.