Salehuddin urges caution in approving large projects

Finance Adviser Salehuddin Ahmed has cautioned against approving unnecessary large-scale projects, saying such ventures could jeopardise the country's debt sustainability if not backed by proper demand, feasibility, and long-term benefits.

"Before approving any big project, we must assess whether the demand is justified, whether the project is feasible, and whether it promises long-term benefits," he said.

He was addressing a workshop titled "Navigating Public Debt in Bangladesh," organised under the Finance Division's Strengthening Public Financial Management Program to Enable Service Delivery, at a Gazipur hotel on Friday.

The programme aims to improve fiscal forecasting, budget preparation and execution, financial reporting, and transparency to enable better resource availability for service delivery in selected ministries, departments, and agencies.

The adviser called for collective responsibility in managing public debt, noting that it should not be seen as the government's burden alone.

"Debt management is a shared obligation involving the corporate sector, Bangladesh Bank, the bond market, and private actors," he said, according to a press release.

He also pointed out the need for real-time data and institutional interoperability to tackle debt-related challenges. "That remains one of our biggest challenges," he added.

Chairing the session, Finance Division Secretary Md Khairuzzaman Mozumder stressed shifting focus from external to domestic borrowing and urged the need for more skilled professionals in debt management.

Arindam Roy, an economist at the International Monetary Fund, noted a rise in external debt from 37 percent in FY23 to 43 percent in FY24 due to the taka's depreciation and higher interest payments amidst high inflation.

Anisuzzaman Chowdhury, special assistant at the Ministry of Finance; Bilkis Jahan Rimi, additional secretary and national programme director of the Finance Division programme; and Suraiya Jannat, lead governance specialist at the World Bank, were the special guests.