STAR BUSINESS REPORT

The government should increase public expenditure and tackle corruption concerns with the aim of meeting the growing needs of an expanding population, said AK Enamul Haque, director general of the Bangladesh Institute of Development Studies (BIDS).

He made the remarks yesterday at a post-budget discussion seminar titled “Economic Transformation and the Banking Sector: Budget 2026–27,” organised by Unnayan Shamannay in the conference room of the World Literature Centre in Dhaka.

As the population grows, demand, investment requirements and the size of the national budget also increase, the economist said.

To meet these growing needs, the country must increase supply capacity through greater public investment. In a high-cost economy, he stressed, government expenditure remains essential.

He emphasised the need to measure the extent of corruption and take effective steps to reduce it. He also highlighted the importance of banking sector reforms, noting that the central bank’s role is to ensure discipline within the banking system and protect the integrity of the banking profession.

Referring to the nearly Tk 6 lakh crore in non-performing loans, he noted that neither individual bankers nor institutions have been held accountable. Establishing accountability and imposing penalties on responsible individuals and institutions, he argued, would help reduce defaulted loans.

He also commented that the government often accepts the recommendations of the IMF and the World Bank. According to him, these institutions often raise concerns about corruption when assessing large-scale infrastructure projects.

However, he stressed that the solution lies not in avoiding infrastructure projects but in reducing corruption while continuing to build the infrastructure necessary to attract both domestic and foreign investment.

The panel discussants included Shahidul Islam Zahid, a professor of the Department of Banking and Insurance at Dhaka University, and Faruq Mayeenuddin Ahmed, vice chairperson of BRAC Bank.

The session was chaired by S M Zulfikar Ali, acting chairman of Unnayan Shamannay. The keynote paper was presented by Mahfuz Kabir, research director of the Bangladesh Institute of International and Strategic Studies.