By December, the ongoing reforms to restructure the banking and SME sectors and restore openness in financial management would be finished, according to Finance Advisor Dr. Salehuddin Ahmed. “In order to overcome the fundamental flaws of weak banks and restore client confidence, the reform process has been hastened,” he stated.
Speaking as the main guest at the ‘SME Foundation-ERF Media Award 2025’ award distribution ceremony in Puran Paltan, the capital, on Wednesday, July 2, he made these remarks.
According to the advisor, significant changes are required in the banking industry. Weak banks are currently undergoing work. Deposits made by repeat clients must be guaranteed.
Highlighting the intricate nature of financing within the SME sector, he remarked that entrepreneurs continue to face significant challenges in securing loans. Nevertheless, their loan repayment rates are commendable. He noted that banks show little interest in collaborating in this area.
Dr. Salehuddin stated that there should be an increased adoption of technology in the SME sector. In today’s technological age, traditional methods are outdated. Entrepreneurs need to prioritize this matter. He urged Bangladesh Bank, the Ministry of Finance, and policymakers to implement coordinated initiatives in this sector.
Expressing concern about the decline in women’s involvement in SME projects, the advisor remarked that women are not only skilled but often excel in management. Therefore, it is essential to ensure greater participation of women. Their empowerment must be achieved through actionable measures, not just rhetoric.
Dr. Salehuddin stressed the importance of creating a comprehensive digital database to accurately record information about SME entrepreneurs. He stated that relying solely on hard copies is insufficient. Everything needs to be digitized, and digital systems should take precedence in all instances.
Questioning the disparities within the current economic framework, the advisor pointed out the existing issues within the banking structure. Despite this, we are allocating 60-62 thousand crore taka to the energy sector, as if SMEs are overlooked. This situation needs to be rectified.
Highlighting the necessity for the effective utilization of government funds and the establishment of good governance within the tax system, Dr. Salehuddin emphasized that transparency in financial management is crucial. Negative reports create challenges for us. We have encountered numerous issues with the NBR. It is imperative to prevent financial waste.
Mentioning the positive nature of remittance flow, he said, to maintain its continuity, we need to create skilled manpower and expand employment opportunities.
This year, the Economic Reporters Forum (ERF) is giving awards to a total of 21 reporters from newspapers, television and online news portals in various categories. Shafiqul Islam, Deputy Chief Correspondent of Dhaka Post, received the ‘SME Foundation-ERF Media Award 2025’ for reporting on the importance of the small and medium enterprises (SME) sector in women’s empowerment.
