AK Azad, Managing Director of Ha-Meem Group and Vice President of the International Chamber of Commerce Bangladesh (ICC Bangladesh), has said that the country’s economy will not improve under the new government unless strict action is taken against loan defaulters.
He made the remarks on Wednesday (March 4) at a roundtable titled “Looking into Bangladesh’s Development: Priority for the Newly Elected Government in the Short to Medium Term”, organised by the Centre for Policy Dialogue (CPD) at BRAC Inn Centre in Dhaka.
The event was moderated by CPD Executive Director Fahmida Khatun, while Mahfuz Anam, Editor of The Daily Star, delivered the introductory remarks. The chief guest was the Prime Minister’s Adviser on Finance and Planning, Rashed Al Mahmud Titumir.
Other attendees included BGMEA President Mahmud Hasan Khan, BTMA President Showkat Aziz Russell, former DCCI President Shams Mahmud, former BASIS President Syed Almas Kabir, former BGMEA President Asif Ibrahim, and former BASIS President and CEO of Bdjobs.com, Fahim Mashroor.
Also speaking at the event were Executive Vice Chairman of the Microcredit Regulatory Authority Dr Mohammad Helal Uddin, Vice Chairman of Policy Research Institute Dr Siddiq Ahmed, President of the Economic Reporters Forum (ERF) Daulat Akter Mala, and Chairman of Policy Exchange Bangladesh, Mashrur Reaz.
Addressing the roundtable, AK Azad said the economy would not return to a healthy position without tough measures against defaulters. He noted that the average default rate currently stands at 36 per cent, reaching nearly 50 per cent in state-owned banks.
“Who has taken this money?” he asked. “For willful defaulters, Bangladesh Bank has introduced an exit policy, which we support. But those who have taken loans and failed to invest in business must face strict action from the government. Otherwise, the economy will not improve.”
He added that the government is currently borrowing 32.19 per cent from the banking sector, while private sector growth stands at only 6.1 per cent. “This means there is no money available for us, or even if there is, we cannot access it. There is no gas connection, there is a power crisis—how can we make new industrial investments under such circumstances?”