Dhaka, September 28, 2025: The Centre for Policy Dialogue (CPD) has called for the urgent transfer of power to an elected government to bolster Bangladesh’s economy. Speaking at a shadow parliament debate competition on bank mergers organized by Debate for Democracy at BFDC in the capital on Saturday morning, CPD Executive Director Dr. Fahmida Khatun emphasized the need for political stability to foster a robust economy.
Dr. Khatun stated that a strong economy cannot thrive under weak governance, as politics and economics are interlinked. She warned that prolonged interim governance is detrimental to the economy, hindering investment and job creation. To restore discipline in the financial sector, she stressed the necessity of holding elections promptly to establish a political government.
Reflecting on the past year, Dr. Khatun noted that while some economic indicators have been maintained, the overall crisis persists, and poverty reduction remains elusive. She criticized the previous government for approving an excessive number of banks based on political considerations, a practice she claimed is unparalleled globally. She further alleged that banks were used as tools for asset accumulation.
Commenting on the interim government’s initiative to merge weak banks, Dr. Khatun described the process as complex and risky, noting that it has caused confusion and uncertainty among the public.
In his remarks, Hasan Ahmed Chowdhury Kiron, Chairman of Debate for Democracy, accused certain Bangladesh Bank officials under the previous Awami League government of enabling financial sector mafias through misuse of power. He claimed that a “mafia economy” prevailed, with banks like Islami Bank being looted in plain sight. Depositors’ funds were not only misappropriated but also siphoned off abroad, leaving customers anxious and uncertain about recovering their savings. Many depositors, unable to access funds for critical expenses like medical treatment, have faced severe hardships, with some even passing away.
Kiron highlighted the staggering 6 to 7 lakh crore Taka in defaulted loans, which remain unrecovered due to problematic or encumbered collateral properties that cannot be auctioned. He noted that influential owners deter potential buyers, further complicating recovery efforts. Additionally, he alleged that politically connected bank owners under the previous regime plundered both movable and immovable assets.
The shadow parliament debate, titled “Bank Mergers Will Restore Discipline in the Banking Sector,” saw the debating team from Government Teachers’ Training College, Dhaka, emerge victorious over Southeast University. The event was judged by Professor Dr. Tajul Islam Chowdhury Tuhin, senior journalist Mainul Alam, professional accountant Abul Bashir Khan, and journalists Md. Alamgir Hossain and Refayet Ullah Mirdha. Trophies, crests, and certificates were awarded to the participating teams.