Every new government faces certain economic challenges. The situation this time is far more serious than before. Economists and analysts believe the BNP-led alliance government will have to continue ongoing reforms in the financial sector while also tackling the challenge of reducing defaulted loans.

Economists and analysts say 36 per cent of total loans disbursed by the banking sector have turned default. The financial institutions sector is in a similar condition. The new government’s main challenge will therefore be to bring banks and financial institutions under proper discipline and provide a strong legal foundation to prevent further irregularities.

Moinul Islam, former professor of the Department of Economics at the Chittagong University, told Prothom Alo that the interim government should have ensured the autonomy of Bangladesh Bank and passed amendments to the Bank Company Act and the Artha Rin Adalat Act 2003 before stepping down. They failed to do so.

The new government should begin by strengthening the sector through a firm legal framework so that no further financial crimes occur. The reform process that has already begun must continue. Those responsible for financial crimes must be brought under punishment. The new government should prioritise the financial sector as it begins its work. It should also give importance to employment generation and controlling inflation, he added.