Bangladesh’s image abroad has improved now: finance adviser

Bangladesh is doing well in the macroeconomic arena now, which has improved the country's image abroad, Finance Adviser Salehuddin Ahmed said today.

"Though there are some challenges, at least money is not being laundered now and the foreign exchange reserve is rising," he said.

He made these comments at a seminar on financial transparency organised by the Economic Reporters Forum (ERF) in Dhaka.

He urged journalists to bring positive news to the front and, at the same time, welcomed criticism and investigative reports.

The adviser said the government cannot find all its flaws.

If journalists can show them, the government can mend them, and the same is true for the private sector, he said.

Md Sajjad Hossain Bhuiyan, chairman of the Financial Reporting Council (FRC), said the FRC was established in 2017 but has yet to become fully effective.

Efforts have been taken to make the FRC fully operational, he said, adding that the council has been entrusted with improving the quality of accounting and auditing practices in Bangladesh.

Wherever there is a flaw in the accounting system, the FRC will intervene, Bhuiyan said, noting that such interventions often make powerful institutions "unhappy" as they feel their personal and financial interests are threatened.

"We are working continuously to restore financial discipline in the corporate sector," he added.

He warned that many businesses avoid taxes and manipulate share prices or asset valuations by withholding their full financial picture.

"Such practices must be curbed to ensure transparency," he said.

"If financial disclosures are complete, share prices will never skyrocket without basis or collapse unexpectedly. When there is manipulation of information, investors suffer," Bhuiyan cautioned.

He stressed the need for showing the true value of assets in audit reports.

"If a bank lends Tk 90 against an asset falsely valued at Tk 100 when it is actually worth only Tk 1, how will the bank recover the loan?" he asked.

After the seminar, the finance adviser inaugurated the academic activities of the ERF Institute.

At the beginning of the seminar, a memorandum of understanding was signed between the ERF and the Institute of Chartered Accountants of Bangladesh to provide training on financial issues at the institute.

Doulot Akter Mala, president of the ERF, was present at the event.