“Country’s economy has regained stability and vibrancy” he said while addressing Moazzem Hossain Memorial Lecture in the capital on Saturday.
Dr Zahid highlighted the contemporary economic condition of the country as well as the overall scenario of the financial and the banking sector.
Economic Reporters Forum (ERF) organized the memorial lecture in memory of its founding president late Moazzem Hossain, also the editor of the English daily The Financial Express.
According to Zahid, the restored economic stability is primarily due to the removal of those responsible for the previous instability.
“Money laundering from the country has stopped, resulting in a significant decline in hundi and an increase in foreign currency inflows,” he noted.
Meanwhile, he said, looting within the banking sector has been halted. “Yet, the true condition of banks has not improved, as defaulted loans continue to rise,” he added.
Dr Zahid, also a member of the committee constitute by the interim government for preparing White Paper on the State of Bangladesh Economy, highlighted the impact of international developments favourable to Bangladesh’s economy, particularly the notable decline in the value of the US dollar.
Zahid asserted that “Policy has not contributed significantly to the current stability. However, there has been a shift in economic management, with greater discipline introduced in policymaking.”
Zahid further noted that tariffs imposed by the Trump administration on different countries have created a positive environment for Bangladesh economy.
Presenting his analysis, he said that tariffs on India and China have opened an opportunity for Bangladesh to increase its exports to the US by approximately $205 crore in the fiscal year 2025-2026.
Since India faces tariffs roughly 30% higher than Bangladesh, he said, this creates an export advantage ranging between $120 crore and $207 crore. While increased tariff on China could boost Bangladeshi exports to US market by an additional $7 million to $25 million.”
Despite these positive signs, Zahid warned that Bangladesh remains trapped in the middle-income bracket.
He cited that the main obstacles of exports include the ongoing power and energy crisis, a distressed banking sector, weakness in the logistics system, underdeveloped labor markets and institutional decay.
On the government’s reform efforts, Zahid emphasised that political willpower alone does not guarantee success.
“Effective reform requires strong delivery capacity. This calls for a coordinated effort among the Council of Advisers, the administration, the business community, and civil society,” he said.
Leading businessman and member of the Financial Express trustee board, Mahbubur Rahman also spoke on the occasion.
Mahbubur Rahman said the changes anticipated following the July revolution are yet to be materialized fully.
The memorial lecture was presided over by ERF President Doulot Akter Mala and conducted by General Secretary Abul Kashem. �”BSS