Prime Minister’s Private Sector Development Adviser Salman F Rahman yesterday said reforms to the banking sector would be announced soon. He hoped that the reform would be able to bring down bank interest rates and loan defaults. Salman F Rahma came up with the remarks while speaking at a programme, organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), in the capital yesterday.
The adviser said the banking sector had long been plagued by a number of problems. Apart from graft and irregularities, the incidents of loan defaults are on the rise. Many banks are yet to bring down lending interest rates to a single digit, which is hindering the progress of good investors.
The government will show zero tolerance to any form of corruption from now on, he added. Citing the Prime Minister’s stance on corruption, Salman said there could be no justification for any form of corruption in the bureaucracy as the government raised the salaries of bureaucrats. “You (bureaucrats) should change your mindset for attracting private sector investment,” he added.
The PM’s adviser also said there is no alternative to creating a supporting environment for development of the private sector. He stressed on reducing bureaucratic tangles to ensure easy access to electricity.
He called upon the Power Division to introduce a new department for resolving problems in the power sector.
Salman claimed that Bangladesh was in a better position in doing business than ever before. “We will implement the VAT Act in accordance with the desire of the business community. Accordingly, the interest rate will also be come down,” he added.
“I have already talked with finance minister on decreasing the lending rate,” he added.