The interim government has not taken any of the measures recommended by the white paper on the state of the Bangladesh economy even after a month and a half of the report's submission, said economists yesterday.

"Many people ask about the future actions regarding the white paper -- this question evokes a sense of helplessness due to uncertainty," said Debapriya Bhattacharya, who led the 12-member committee that prepared the white paper.

Bhattacharya's comments came at a symposium titled "White Paper and Thereafter: Economic Management, Reforms, and National Budget", held yesterday at the Bangabandhu International Conference Centre.

"Our aim is to ensure that the government incorporates the white paper's recommendations into its policymaking," he added.

The white paper committee submitted the report one and half months ago, but the government has no programme yet that will show that it owns the paper, said Selim Raihan, executive director of the South Asian Network on Economic Modelling.

"There is no widespread discussion too -- it remains a big question to me," he added.

Regarding the current economic situation, Bhattacharya criticised the interim government for "inconsiderately" increasing value-added tax.

If the government intends to collect taxes effectively, it should gradually shift its focus to direct taxes.

"We have not seen any plan to collect direct taxes. Raising the VAT indicates a preference for indirect taxes over direct taxes, which is concerning," said Bhattacharya, also a distinguished fellow at the Centre for Policy Dialogue.

Meanwhile, the country's growth rate is slowing and the energy situation is expected to worsen.

Although the interim government has undertaken several initiatives in the banking and energy sectors, the efforts are ad hoc and lack coordination, Bhattacharya said.

Corruption in Aman paddy collection remains unchanged, with farmers still not receiving fair prices.

Food stock is not increasing in government warehouses even though the government has identified it as a means to tame inflation.

"While the government may increase allocations for education and healthcare, it remains unclear how these funds will be utilised or who will benefit from them," Bhattacharya added.

Commerce Adviser Sk. Bashir Uddin defended the interim government's decision to increase VAT, stating that VAT is crucial in an unregulated market where tax evasion is prevalent.

"Relying on direct taxes may be effective for developed economies. However, for an unregulated market like ours, indirect taxes are critically important."

Regarding the family card programme under the Trading Corporation of Bangladesh (TCB), Bashir said digitisation uncovered about 37 lakh fake cardholders.

He suggested discussing whether the government should raise the prices of TCB products to expand its beneficiaries.

Commenting on the high interest rates, he said most banks reported substantial profits in 2024 due to higher interest income.

"It is clearly unethical to earn such high profits while businesses are struggling," he added.

Dissecting the notion of the fastest-growing economy, Zahid Hussain, a former lead economist at the World Bank's Dhaka office, said GDP growth estimates averaged 4.2 percent annually between fiscal 2008-09 and 2018-19 and not 7 percent as officially reported.

He attributed the disparity to underinvestment, a narrow export base, low human capital and resource misallocations, which caused growth trends to diverge from fiscal 2013-14 onwards.

With low revenue and forex earnings growth, the country became increasingly dependent on debt for its annual development programme. However, the development projects were marred by corruption and mismanagement, he said.

"Consequently, borrowed money (both in dollars and taka) ultimately moved into the accounts of cronies at home and abroad via ADP projects, burdening current and future generations with debt."

The path to reviving the economy depends on sound policies and political commitment to economic reforms. However, the cost of inaction is becoming increasingly evident, Hussain said.

Umama Fatima, spokesperson of the Anti-Discrimination Student Movement, criticised the bureaucracy for supporting the previous government, with most bureaucrats avoiding jail time.

While the public is suffering from high inflation, bureaucrats are continuing to receive dearness allowances, she said, while stressing the need for increased government support for research and development.

In another session, Anu Muhammad, a former economics professor at Jahangirnagar University, said Sheikh Hasina's government received support from bureaucrats, business people and international agencies like the World Bank and the Asian Development Bank, which propagated the narrative of the country's "development miracle".

"They must take responsibility," he said.

During her tenure, institutional degradation was rampant. The interim government must take steps to restore institutional integrity.

"We do not want the white paper to be ignored in policymaking," he added.

While it is possible to recover the siphoned funds, the process is challenging, said Mustafizur Rahman, distinguished fellow at CPD.

Although the interim government is making efforts to recover the funds, resources must be allocated for special prosecution, forensic audits, staffing and data acquisition.

"These steps are crucial for proving cases in local courts before pursuing them internationally."

Rahman also recommended ensuring the independence and autonomy of the Implementation, Monitoring, and Evaluation Division to prevent further corruption in ADP projects.

Sayema Haque Bidisha, pro-vice Chancellor of Dhaka University; Ferdous Ara Begum, chief executive officer of Business Initiatives Leading Development; Owasis Parray, senior economic adviser at UNDP Bangladesh; and M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, also spoke.