United News of Bangladesh

Finance Adviser Dr Salehuddin Ahmed on Tuesday said Transparency International Bangladesh (TIB) has failed in many cases to properly recognise the government’s ongoing reform initiatives, arguing that not all reforms are immediately visible. He made the remarks while speaking to reporters at the Secretariat after a meeting of the Advisers’ Council Committee on Government Procurement. Responding to a question about a recent TIB observation that the interim government’s reform and development efforts were less substantive than they appeared, Dr Salehuddin said the organisation’s assessment overlooked several fundamental changes. Read More: Banking sector reform can’t be done overnight: Salehuddin “TIB cannot see everything. They do not have divine vision or perfect sight. Even if they want to see, they cannot always see many things,” he said. He stressed that reforms should not be judged only by legislation, pointing to procedural and administrative simplifications carried out by the government. “Do not just look for reform laws. We have simplified many processes. For example, earlier one had to seek permission under the outward wage scheme. We are not saying it is automatic now, but the process has been eased. Why do people not see what we have done?” he asked. When journalists noted that Dr Salehuddin had previously praised TIB and that organisations often face criticism once governments come to power, he rejected the suggestion that he was attacking the watchdog. “No, no — I am not criticising or defaming TIB. I still acknowledge their role. But I am saying: look at the fundamental issues. If someone does not want to see, then many things can be ignored,” he said. He added that he had never engaged in baseless criticism while outside government and had always focused on core policy issues. Referring to the fact that TIB Executive Director Iftekharuzzaman had been a member of the government’s reform commission, the finance adviser said public expectations regarding reforms were understandably high. “People definitely have expectations. We also thought we would carry reforms forward smoothly. But reform requires cooperation and a proper process,” he said. Drawing on his experience within the administration, Dr Salehuddin said systemic weaknesses and procedural flaws made reform implementation extremely difficult. Read More: Pay Commission recommendations need review before implementation: Dr Salehuddin “I have seen from inside how flawed the processes are — more than you can imagine. Still, we have pushed many things through the Ministry of Finance. The finance secretary and others worked quickly. I provided immediate solutions where possible,” he said, adding that several advisers were frustrated due to institutional constraints. He said his background in the civil service had helped him navigate the system more effectively than many others. “I was trained in the civil service. I know how things work. Not everyone has that experience. Without cooperation, reform becomes very difficult,” he said. Frankly acknowledging the challenges, Dr Salehuddin said working within Bangladesh’s administrative framework was particularly demanding. “This is a very difficult place to work. The processes are extremely complicated, with too many interventions. Untangling them is like solving a knot,” he said. When asked whether bureaucracy was the main obstacle, he said it was certainly a major factor, but not the only one. “There is definitely a bureaucratic element. But the system itself and the laws that were drafted earlier were not done properly,” he said. Citing the banking sector as an example, he said governance standards had weakened over time. “During my time, two or three directors from the same family were allowed in a bank. Later, that number suddenly increased to six or more. This is moving backwards instead of forwards,” he added. Read More: Long-term energy strategy prepared to ensure fuel security: Salehuddin

Finance Adviser Dr Salehuddin Ahmed on Sunday said the current interim government would leave Bangladesh’s economy in a “satisfactory and stable” position for the next elected government, though he acknowledged that significant challenges remain ahead. “I believe we are leaving the economy in a satisfactory place. The next government will not face major difficulties in continuing from here. The situation is stable now — not shaky like before,” he said. Speaking to reporters after the Government Purchase meeting at the Secretariat, Dr Salehuddin said the economy is no longer in a fragile or unstable condition, unlike earlier periods, and that the foundations have been stabilised to allow future governments to move forward. Responding to questions on whether the government had taken on record levels of debt, the finance adviser said while borrowing had increased, a substantial amount of external debt had also been repaid. “Yes, borrowing increased, but we also repaid around six billion dollars in external debt. Debt repayment is equally important,” he said, adding that many large, expensive infrastructure projects were deliberately avoided. “We did not go for costly mega projects like tunnels or projects worth thousands of crores through loans. That is why public debt pressure did not worsen further,” he said. He admitted that employment generation remained one of the government’s biggest challenges, largely because job creation requires sustained support for small and medium industries. “Our major challenge was employment. For that, small and medium enterprises are essential. But we did not have enough fiscal space. Large factories are not labour-intensive, and they come with many complexities,” he explained. Addressing concerns over contradictory statements about future economic risks, Dr Salehuddin clarified that while the economy is stable, reforms need to be consolidated and carried forward carefully. “What we have done is not a one-off solution. To take it forward, it needs to be strengthened further. That itself is a big challenge,” he said, noting that access to concessional foreign aid has declined, making future financing more difficult. He stressed that reforms require time, cooperation and procedural discipline, which are often difficult in Bangladesh’s complex administrative system. “Reform is not just about speeches. It requires process, cooperation and patience. Inside the system, procedures are extremely complicated. Without cooperation, it becomes very difficult,” he said. Highlighting governance reforms, the finance adviser said the government has made significant progress in digitising land records and khatian maps, making services cheaper and more accessible to citizens. “Porcha and land records are being digitised. Now people can get services for Tk20, which earlier cost Tk500. We are expanding digital access nationwide,” he said. He described the initiative as one of the most fundamental service delivery reforms, reducing harassment and improving transparency. Dr Salehuddin also confirmed that the government is preparing to face international arbitration over alleged financial disputes and money laundering allegations involving business interests linked to S Alam Group. He said a case has been filed at the International Centre for Settlement of Investment Disputes (ICSID), a World Bank-affiliated arbitration body, following complaints lodged by the concerned party. “They have gone for arbitration at the World Bank forum. We have received notice and must respond. This is a very serious matter involving a large amount of money,” he said. The government has decided to engage international legal counsel to contest the case, he added. “We will engage a legal firm. This is not a simple issue. Legal preparation is essential,” he said, though he declined to disclose the name of the firm at this stage. A government team is expected to visit Washington, DC, to deal with the arbitration process, he said. On power sector reforms, the finance adviser said electricity tariffs are being rationalised rather than increased arbitrarily. “This is tariff restructuring, not a price hike. Money is being adjusted from one segment to another. It will not affect electricity supply,” he said, adding that efficiency issues at power plants such as Ashuganj are also under review. Dr Salehuddin said despite criticism, many fundamental reforms had been undertaken, even if they were not always visible. “People say nothing has been done because they only look for visible projects. But many fundamental procedural reforms have taken place. If someone does not want to see, they will not see,” he remarked. The government has appointed a British law firm to contest an international arbitration case filed by S Alam Group founder Saiful Alam and his family before the International Centre for Settlement of Investment Disputes (ICSID). Sources familiar with the decision said the Advisory Committee on Government Procurement has approved the appointment of White & Case LLP, a UK-based international law firm, to represent Bangladesh in ICSID arbitration case No. ARB/25/52. The firm will be paid a fee of US$1,250 per hour for its legal services. The proposal to hire an international law firm was placed before the committee by the Ministry of Law, Justice and Parliamentary Affairs, citing the complexity and high financial stakes of the case. Speaking to journalists after the meeting, Finance Adviser Dr Salehuddin Ahmed said the arbitration was linked to allegations of money laundering. “S Alam has apparently filed a case in London and challenged Bangladesh at the World Bank’s ICSID. We need to engage an international legal firm to fight this case, as it involves a huge amount of money and has been brought before an organisation like the World Bank,” he said. When asked about the identity of the firm, the adviser said it was a British firm but did not name it at the time. Dr Salehuddin also said legal action was underway against S Alam over alleged money laundering.“When a government or a company is accused of obstructing business, ICSID arbitration is invoked. We have received the arbitration notice and must respond. This is a highly complicated legal process,” he added. In October last year, lawyers representing S Alam and his family formally filed the arbitration request at ICSID in Washington, alleging that asset freezes, confiscations and punitive measures taken by the Bangladesh government over money laundering allegations caused them losses worth hundreds of billions of dollars. In their filing, the S Alam family claimed that the interim government has deliberately targeted them through bank account freezes, asset seizures, “baseless investigations” into their businesses and a “provocative media campaign,” arguing that such actions violate international investment protection obligations. The arbitration has been filed under the 2004 Bangladesh–Singapore Bilateral Investment Treaty (BIT). Documents show that members of the S Alam family renounced Bangladeshi citizenship in 2020 and obtained Singaporean citizenship between 2021 and 2023. They are currently residing in Singapore. As Singapore nationals, they claim entitlement to international investment protection under the BIT, as well as protection under Bangladesh’s Foreign Private Investment (Promotion and Protection) Act, 1980. Following the August 5, 2024 mass uprising that led to the fall of the Sheikh Hasina government, an interim administration headed by Prof Muhammad Yunus initiated investigations and asset recovery efforts against major business groups and influential individuals accused of large-scale money laundering. An economic white paper published by the interim government in December 2024 estimated total illicit capital flight at around US$234 billion. Bangladesh Bank Governor Ahsan H. Mansur, who heads the asset recovery task force, has alleged that the S Alam family alone siphoned off nearly US$12 billion abroad. He accused S Alam and his associates of taking control of multiple banks with the help of military intelligence and transferring funds overseas through loan and import fraud, forcing the government to bail out six banks. S Alam Group has denied all allegations, saying the government has failed to present any credible evidence to support the claims.

Finance Adviser Dr Salehuddin Ahmed on Tuesday said that he has already surrendered his diplomatic passport, emphasising that the move is part of a standard procedure and not linked to any immediate travel plans. “I have already submitted it. I am not going anywhere. My health condition is not very good, as you know. I do not attend meetings unless they are extremely urgent,” he said. Speaking to reporters after the Advisers’ Council on Government Procurement meeting, Dr Salehuddin said he has no intention of travelling abroad unless it is absolutely necessary, citing health concerns. Read More: Economic situation stable, recovering steadily: Finance Adviser Responding to a question on whether other advisers had also surrendered their passports, he said several individuals had done so, noting that it was a requirement. “Many have submitted theirs. It has to be surrendered—it is a rule,” he added. He further said that advisers would now use ordinary passports like general citizens. “We will get new passports and move around with ordinary passports like you,” he remarked. Earlier, the Foreign Affairs Adviser had said that some advisers surrendered their diplomatic passports to facilitate visa applications using ordinary passports. Asked whether applying for visas using ordinary passports posed any difficulty, Dr Salehuddin dismissed such concerns, saying visa processing had never been an issue for him. “If you want a visa, you must apply independently. You cannot travel extensively first and then expect visas automatically. I have never faced any problem with visas,” he said, adding that he had previously travelled using an official (green) passport. The surrender of diplomatic passports by advisers is seen as part of an effort to standardise travel privileges and align them with existing regulations governing public office holders. Read More: Finance adviser urges patience on new pay scale, backs referendum Foreign Affairs Adviser Md Touhid Hossain on Sunday said reports claiming that he had surrendered his diplomatic passport are untrue, although he acknowledged that some of his colleagues have opted for ordinary passports to facilitate quicker visa processing due to travel-related issues. “Here is where misinformation comes in. Neither my wife nor I have surrendered our diplomatic passports. My passport is with me. It is highly unusual that the Foreign Adviser or any Minister would surrender his or her diplomatic passport while the tenure is still in effect,” he told reporters when asked about surrendering diplomatic passports by Advisers. Hossain, however, confirmed that some have taken new passports, noting that it can make obtaining visas easier in certain cases. But the Foreign Adviser did not mention who obtained the new passports.

The government on Sunday reaffirmed its commitment to ensure the distribution of all school textbooks by the first month of the next year, despite concerns over irregularities in previous allocations and questions over the quality of books. After a meeting of the Advisers Council Committee on Government Purchase and the Advisers Council Committee on Economic Affairs, Finance Adviser Dr Salehuddin Ahmed said orders for printing textbooks for certain classes have already been placed. He said authorities are now reviewing the list of recipient institutions to ensure that no school has received multiple allocations or been involved in irregular practices in the past. “We want to make sure that those who previously got books properly get them again, but we are also reviewing allegations that some institutions took more than their share,” he said. The meeting was held at the Secretariat with the Finance Adviser in the chair. He mentioned that the government is determined to finalise the list within the next two weeks so that the books can be distributed on schedule. “Our target is clear—students must receive textbooks on time, by January 1,” the adviser said. Govt moves to fast track printing of school textbooks for 2026 session Last year, new textbooks were delivered as late as March, but this year the ministry has brought the process forward to September to prevent delays. Authorities are also reviewing paper quality and other production features, aiming to avoid past complaints over substandard books. Dr Salehuddin also said the government has decided to procure vaccines for the Expanded Programme on Immunization (EPI) in two phases, while also trying to negotiate a reduced commission with Unicef. Speaking to reporters at the meetings, the adviser said Unicef had initially proposed a six-month supply arrangement, but the government opted for a phased approach. “We have asked Unicef to supply vaccines for three months first. For the next three months, we want to explore competitive bidding and see if international sources can also participate,” he said. The adviser noted that half of the requirement would be met immediately through Unicef, while the remaining will be finalised later. “We have also requested Unicef to reconsider their commission rate and bring it down,” he added. Responding to a question, the adviser, however, said details about the source countries for the vaccines have not yet been sought. Meanwhile, the proposal for printing, binding and supplying free textbooks for the 2026 academic year was withdrawn from the meeting agenda on Sunday. Procurement delay threatens timely distribution of class 6-8 textbooks in 2026 The withdrawn item covered free textbooks for students of Class IX in the secondary (Bangla and English versions), Dakhil, SSC and Dakhil Vocational Class IX, as well as Technical Trade Classes IX and X. The proposal had been placed by the Secondary and Higher Education Division and the agenda was dropped following a request from the Division itself.

Finance Adviser Dr Salehuddin Ahmed on Saturday said spending on education is always an investment in the nation’s future. “By investing in education, we are not merely helping individual students—we are shaping the future of the country,” he said while addressing a scholarship distribution ceremony of the Brahmanbaria District Association, Dhaka. He praised Brahmanbaria as the ‘Land of Heritage and Harmony’, and lauded the community’s unity and vision for building a district recognised for knowledge, culture and innovation. The Association hosted its Executive Committee Installation and Scholarship Award Ceremony at International Convention City Bashundhara (ICCB), highlighting both the district’s heritage and its ongoing commitment to education and social advancement. A total of 312 scholarships were distributed among meritorious students—25 at Honours level, 182 at HSC level, and 105 at SSC level, aimed at nurturing academic excellence and creating opportunities for Brahmanbaria’s youth. Quality services needed to boost revenue collection: Finance adviser Brahmanbaria District Association President MA Khalek said the district has a proud tradition of producing leaders, scholars and artists. “Today we renew our commitment to building a Brahmanbaria recognised for its talent and contribution, not for negative stereotypes,” he said. General Secretary Engineer Md Khaled Hossain Mahbub (Shyamal) said the gathering was ‘a call to action’ to create and uphold a positive image of Brahmanbaria across Bangladesh and beyond. The event ended with cultural performances showcasing the rich traditions of the district, reinforcing the message of unity and pride in its heritage.

Finance Adviser Dr Salehuddin Ahmed on Tuesday expressed optimism about securing a better outcome in the one-to-one negotiation with the United States Trade Representative (USTR) following US President Donald Trump’s announcement of new tariffs on imports from 14 countries including Bangladesh. “The final tariff will be fixed in the one-to-one negotiation with the USTR. That’s why we will have our meeting with them (USTR), the rate is not final yet,” he told reporters emerging from Cabinet Committee on Government Purchase (CCGP) meeting held at the cabinet division of Bangladesh Secretariat. The meeting with the USTR is scheduled for July 9 (US time). The Finance Adviser dismissed concerns over weak negotiation skills on Bangladesh’s part,  saying, “Vietnam received greater tariff relief because their trade deficit with the US is $125 billion while ours is only $5 billion. So, Vietnam got the better discount in the tariff rates.” He said the Commerce Adviser is already in Washington and has been working on this issue since he went three days ago. “We will understand the matter after holding the July 8 meeting which will be held early morning on July 9 (Bangladesh time),” he said. He also said whatever be the result, the government will take its measures considering the final outcome of the meeting. Govt didn’t interfere in ACC probe into NBR officials: Finance Adviser “So far, the meetings we have all are positive,” the Finance Adviser said. US President Donald Trump on Monday slapped a 35% tariff on Bangladeshi goods, 2% lower than his initial rate announced three months ago, but significantly higher than close rival Vietnam (in the field of RMG), which recently secured a trade deal with the US under which its goods will be charged a tariff of 20%.  Trump made the much-anticipated announcement on his Truth Social account, by publishing his letter dated July 7 to Chief Adviser Muhammad Yunus at 2.36am (Tuesday) Bangladesh time. He posted identical letters to other world leaders revealing the tariff rates for their respective countries, which said the new rates would be effective from August 1. Apart from Bangladesh, it was learned on Monday that imports from Myanmar and Laos would be taxed at 40%, Cambodia and Thailand at 36%, Serbia at 35%, Indonesia at 32%, South Africa and Bosnia and Herzegovina at 30% and Japan, South Korea, Kazakhstan, Malaysia and Tunisia at 25%. More letters may be forthcoming.  The letters warned Trump’s counterparts to not retaliate by increasing their own import taxes, or else the Trump administration would further increase tariffs.

The much-talked-about meeting scheduled for 4pm between Finance Adviser Dr Salehuddin Ahmed and the NBR Reform Unity Council will not take place. According to NBR sources, the Finance Adviser ‘declined’ to meet the Unity Council members. Finance Ministry sources said the Adviser asked the agitating members to call off their protest programme first as a ‘precondition’ for any dialogue. NBR sources said a 20-member delegation led by Unity Council President Hasan Muhammad Tareq Rikabdar was on its way to meet the Adviser when they were informed about the ‘precondition’. Officials of the National Board of Revenue (NBR), under the banner of the NBR Reform Unity Council, continued their ‘complete shutdown’ for the second consecutive day on Sunday, demanding the immediate removal of the NBR chairman. The protesters (officials) staged a sit-in in front of the NBR headquarters in Agargaon in the morning, while a large contingent of Rapid Action Battalion (Rab), Border Guard Bangladesh (BGB), and police personnel were deployed inside the building. Entry to NBR headquarters ‘restricted’ amid officials’ protests The Unity Council has been staging a series of protest programmes, demanding structural reforms and the removal of the NBR Chairman, citing allegations of administrative irregularities, officer intimidation and obstruction of pro-reform efforts. Since early June, the agitating officials have observed work abstentions, hunger strikes and human chains, disrupting services in tax, VAT and customs offices across the country. The protest began after the government issued an ordinance on May 12 dissolving the NBR and the Internal Resources Division, replacing them with the Revenue Policy Division and the Revenue Management Division.

Finance Adviser Dr Salehuddin Ahmed will sit with the National Board of Revenue (NBR) officials to discuss its reform issues on Tuesday. The meeting will start at 3:30 pm at the Finance Ministry on Tuesday, said Al Amin Sheikh, public relations officer of NBR. Besides, a six-hour fresh pen-down strike enforced by the NBR Reform Unity Council was observed on Sunday to press home their demands for sustainable and inclusive NBR reform. The Council’s key demands include the immediate withdrawal of the proposed Revenue Ordinance, public disclosure of the NBR Reform Advisory Committee’s report and a comprehensive reform of the revenue system through meaningful consultations with stakeholders like NBR officials, business associations, civil society members and political leaders. The Unity Council emphasised their desire for a peaceful resolution through dialogue with the government. “We hope the government will sit down with us for discussions. Let us make it clear—our door for dialogue has always been open, remains open and will continue to remain open,” said a statement on Saturday. Earlier on Saturday, a five-hour pen-down strike was spontaneously observed from 10:00 am to 3:00 pm across various offices under the Customs, VAT and Tax departments, as well as the National Board of Revenue (NBR). Officials and employees at all levels participated in the programme, with stakeholders from various sectors expressing solidarity with the movement. NBR split logical, protests regrettable: Prof Abu Ahmed In their statement, the Council reiterated that a timely and sustainable reform of the revenue system is essential for national interest. They noted that NBR officials have long been demanding such reforms and yet the government issued the ordinance without consulting the very stakeholders responsible for its implementation. Besides, the report from the reform committee formed by the government has not been made public or discussed. According to the Council, such a top-down approach to reform could severely destabilise the country’s revenue administration.      

Finance Adviser Dr Salehuddin Ahmed on Tuesday said the remarks made by Tulsi Gabbard will not affect the bilateral relations between the two countries or Bangladesh’s economy. “Tulsi Gabbard’s comments will have no impact on our bilateral ties or economic activities,” he told reporters following the meeting of the Advisers’ Council Committee on Government Purchase. When asked about clearing congestion at Chattogram Port, Dr Salehuddin said the situation has improved. Talks just beginning between Trump's cabinet and Bangladesh govt: Tulsi Gabbard to NDTV Regarding reports of soybean oil floating near a cargo ship, he acknowledged the issue, saying, “We are aware of the matter. Traders often employ different tactics, and we are working to address them. The more strategic they become, the more vigilant we need to be.” On the question of possible negligence, the Finance Adviser said, “The Ministry of Commerce has been asked about the issue and they have handled it efficiently.”

Commerce and Finance Adviser Dr Salehuddin Ahmed on Sunday said Bangladesh has the enormous opportunity to make the leather and footwear items very good products in the export basket.  “Leather sector is very prospective for export diversification. For export diversification the leather sector is a very good item. This sector has prospects and problems as well,” he said while briefing reporters after holding a meeting with the leaders of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association and Bangladesh Tanners Association at his Finance Ministry office. He mentioned that they have discussed various issues related to the prospects and problems of the leather sector. “We have discussed all the problems. Why they have been shifted to Savar, what the environmental situation is in there, their financing (problems), their certification to export leathers, we have discussed all these points,” he said. In the meeting, the Adviser said, they have discussed everything to make these leather and footwear items big export products for the country. “And this sector has every possibility for this upgrade,” he said. The adviser also mentioned that leather is a raw material and it is locally produced. “This is a big advantage for us.” Government aims to simplify business, trade: Commerce Adviser Bangladesh leather industry comprises the components of tanning and finishing, footwear and footwear components, leather accessories and leather goods, e.g. bags, wallets, belts, accessories, etc. Products such as fabric-based footwear are also now being produced in Bangladesh for global retailers. International brands like Adidas, Aldo, Timberland, Marks & Spencer, Steve Madden, Esprit, ABC Mart, Nike and K-Mart, Sears etc. are sourcing leather goods or footwear from Bangladesh. European countries are the main markets for leather and leather products in Bangladesh. However, Bangladesh also exports to the United States, Japan, UK, China and a few other countries. The leather sector of Bangladesh includes 200 tanneries, 3,500 MSMEs, 2500 footwear making units and 90 large firms. Bangladesh meets the demand for about 10% of the world’s total leather market. Recently, a sustainable 205 industrial units Tannery Estate has been developed with CETP and STP and the production of eco-friendly leather and linkage industries-packing, lasts, adhesives, outsoles are growing rapidly. The Bangladesh government has taken many steps to upgrade the industry. The government has already set up a modern leather industrial estate in Savar and two more leather industrial parks will be set up in Chattogram and Rajshahi for unlocking the huge potentials of the country’s leather sector. Tanneries of the Hazaribagh area have been shifted to a modern environment-friendly tannery estate in Savar. Tanners have now the option to build their industrial unit by applying modern concepts. They can add updated hydraulic and pneumatic machines, apply the latest production processes, and use technology upgrades.