Experts at the dialogue underscored the need for immediate reforms of the banking sector and strengthening of the central bank for consolidating the economy.

“The banking sector is performing inefficiently. This sector needs transparency and accountability. Otherwise, no depositor will be interested

in investing here,” Metropolitan Chamber of Commerce and Industry president Nihad Kabir said.

“It'd be hard to implement the ambitious budget in an election year. So, it's rather difficult to implement it in a cost-effective way,” she said this while addressing at a budget dialogue titled "An Analysis of the National Budget for FY 2018-19", organised by the Centre for Policy Dialogue (CPD) at a hotel in the capital yesterday.

“Right now, there are a number of concerns about moving towards a new economic phase. We've to increase our export growth. It's now USD 40 billion as against Vietnam's USD 200 billion. We must consider this issue,” said Prof. Rehman Sobhan.

“We need a strong financial sector for ensuring access to credit and security to investors. Everyone is familiar with non-

performing loans. We should think about the matter,” he added.

He also said that infrastructural development was necessary for foreign direct investment.

 They also emphasised the importance of carrying out infrastructural development for ensuring foreign direct investment and security in the financial sector to boost investment in the private sector.

The speakers said it would be hard to implement the "ambitious" budget fully because of the election year. A cost-effective approach is needed for harnessing

the maximum implementation of the budget, they added.

Planning minister AHM Mustafa Kamal, state minister for finance MA Mannan, senior BNP senior leader Amir Khasru Mahmud Chowdhury, Metropolitan Chamber of Commerce and Industry president Nihad Kabir, CPD fellow Prof. Mustafizur Rahman, CPD executive director Fahmida Khatun, Gonoshasthaya Kendra founder Jafrullah Chowdhury, Political scientist Dr Rounaq Jahan and Prof. Rehman Sobhan, among others, spoke at the event.

In her keynote paper, Fahmida Khatun said the budget lacked any broader discussion on economic reforms and failed to take a forward-looking approach about raising the overall efficacy of institutional performance and governance. Various reform measures undertaken over the years did not generate the expected results in local government institutions, the financial sector, and tax- and tariff-related areas.

Different organisations concerned are weak in ensuring internal and external coordination and integration—this has

further delayed the process of implementation and undermined the quality of expected results, she added.

Amir Khasru Mahmud Chowdhury said the increased tax burden inconvenienced the common people, but a small section of people were continuously amassing wealth.

"This is quite unbelievable," he added.

“The government is providing facilities to those banks that are looting wealth from people. The government is giving more incentives to those banks and taking no action against them.

The Banking Division of the finance ministry should be dissolved. The central bank should be allowed to function independently as it's an autonomous body,” he added.

“The government would take action in case of any irregularities in the banking sector. No looting of wealth has been going on. All banks are functioning fairly,” said MA Mannan.

He, however, mentioned that reforms were necessary in all sectors and the government was working on the right path.

AHM Mustafa Kamal said the waning export volume could be attributed to shortage of power, but the government had already taken initiatives to address the matter.

“We'll bring reforms in the banking and financial sectors. But it can't be said that the government

has not taken any measures against banking sector irregularities. We'll also strengthen the central bank,” he added.

The government is also aware of streamlining taxation for paving the path for foreign direct investment, he noted.