Abul Kashem Haider, former vice-president of the FBCCI talks to The Mirror Asia about the country’s economy, freedom of speech, and other current issues. 

TMA: How can Bangladesh become a developed country without good governance?

Abul Kashem Haider: Without good governance, dreaming of becoming a developed country by 2041 is unrealistic. The idea of ‘Smart Bangladesh’ won't become a reality without it. We also need to eliminate corruption and nepotism from every sector to achieve the ‘Smart Bangladesh’ vision set by Prime Minister Sheikh Hasina.

TMA: Malaysia fell into the middle-income trap due to corruption. Will Bangladesh face the same fate?

Abul Kashem Haider Haider: We keep speaking out against corruption and money laundering, but who’s listening? Wealth is still being siphoned off. Every businessman has homes in London, America, and Canada, and they're involved in money laundering.

TMA: What about the double-digit inflation the country has faced for three years?

Abul Kashem Haider Haider: I don’t know much about that, but Bangladesh has been dealing with high inflation due to global and domestic factors. Look at the Ukraine-Russia war. Even Europe and America are struggling. We feel the impact of international pressures too. Our monetary policy is flawed. Recently, Bangladesh Bank printed money to help some banks. How long can banks survive like this? Last week, ICB Islami Bank couldn’t even refund Tk 1,000 to customers when central bank assistance stopped. From an economic perspective, is it ethical to pay cash this way? This shows there’s no good governance in the banking sector.

TMA: As an experienced businessman, how is the business environment now?

Abul Kashem Haider Haider: Business is really tough now. We can’t operate as per the rules. There’s been a lack of good governance in business and finance for a long time. Banking and company laws are flawed. The Bank Company Act needs immediate revision to get the banking sector back on track. Four major points are crucial: establishing the rule of law, addressing irregularities, stopping money laundering, and ensuring justice. We need discipline in the financial sector. Why can’t Bangladesh turn around like Sri Lanka? Sri Lanka did it by getting four things right, including accurate government data.

TMA: Why is it necessary to amend the Bank Company Act?

Abul Kashem Haider Haider: Why should a bank have four directors from one family? They control banks and financial institutions, leading to trouble ahead. One family shouldn’t have that much power for ages. During the BNP era, one-third of a bank's board from one family had to retire. Many have been chairmen for twenty years.

TMA: Are IMF conditions business-friendly?

Abul Kashem Haider: The IMF always pushes to stop subsidies on gas, electricity, and financial incentives. If gas prices rise from Tk 15 to Tk 30, production will drop drastically. Electricity prices are increasing every month. If the government doubles bills like this, how can a businessman plan for the future? Starting a business takes seven to ten years of planning. So, there’s no need to comply with all IMF conditions.

TMA: Do you think this government or Prime Minister Sheikh Hasina can establish good governance?

Abul Kashem Haider: Prime Minister Sheikh Hasina built the Padma Bridge with public money and constructed a tunnel in Chattogram. Surely, she can bring good governance to the banking sector for the 20 crore citizens. This requires political will.

TMA: How do you evaluate the performance of Bangladesh Bank Governor Abdur Rauf Talukdar?

Abul Kashem Haider: Personally, he’s a good person. I’ve interacted with him at many events. But he hasn’t managed the banking sector professionally. His decisions lack consistency. Once, bank interest rates were set at 6-9%. Now, all caps on interest rates are lifted, and rates have risen to 14%. How can traders do business with such high rates? Why did the exchange rate stay fixed for so long? Now, the dollar rate suddenly increased by Tk 7. The central bank is failing to provide policy support to traders.