BM Desk :  Bangladesh’s economy is not just at “zero,” but has already fallen below it, according to Chief Advisor Muhammad Yunus, who also blames the Awami League government’s “rampant corruption, bribery, and money laundering” for the worsening financial catastrophe.

He claimed that the economy is under “immense debt pressure,” with foreign reserves almost depleted and the financial sector already in ruins, when speaking at Chatham House on Wednesday, the second day of his trip to the UK.He answered questions about the economy, foreigners, corruption, elections, and the Awami League during the post-conversation Q&A. In response to a question regarding the economy, Yunus stated, “This is a really tough task for us.” “We are facing a different set of issues while the rest of the globe is dealing with all of these issues.” “We find ourselves at a zero or even negative level in our economy. Zero implies that there is still something positive to build upon.

He further stated, “We are burdened with substantial debts due to the mega projects undertaken, which were intended to yield kickbacks,” he noted. “These loans are now coming due, and we simply lack the funds to settle them. “Yunus mentioned a taskforce report indicating that approximately $234 billion has been misappropriated from both banking and non-banking sectors. He clarified that the nation’s foreign exchange reserves are “at rock bottom—completely depleted,” and the banking system has “entirely collapsed.”

The interim leader illustrated how entire boards of banks were compelled to resign under duress, replaced by selected officials who granted loans to associates with the understanding that the funds were a “gift”—no collateral required, and no repayment anticipated. “This is the banking system we have inherited,” he remarked, emphasizing that its restoration is now crucial.

The government is facing “pressure” to fulfill outstanding payment obligations to creditors who, Yunus cautioned, are ready to initiate legal proceedings. “That would not bode well for us,” he added. Yunus acknowledged that during the crisis, the country was supported by overseas Bangladeshis, especially those in the UK, Middle East, and other areas, who continued to send significant remittances.

“That saved us,” he remarked. “They were the ones who salvaged the economy. The remittance continued to rise, and as a result, our balance of payments situation has transformed completely.” Yunus mentioned that the interim government, established three days following the mass uprising that ousted the Awami League, has garnered backing from the International Monetary Fund (IMF) and the broader international community. He further noted that it has also received an “incredible” response from governments globally. “There has been tremendous support,” he stated, highlighting that numerous countries expressed relief at the establishment of a transitional authority—one they believe they can collaborate with. “They said, ‘Please let us know if you need any assistance—we are eager to help.'” He characterized this as a significant moral uplift for the administration. “We are not left alone.” These comments were made in reply to a question regarding whether the caretaker administration would fulfill IMF

expectations, especially concerning tax reform and expanding the tax base before a new elected government assumes power. Yunus indicated that the IMF had requested Bangladesh to allow the market to dictate the exchange rate. “Initially, we were apprehensive,” he admitted, “but they reassured us, ‘You can manage this.'” He emphasized that the IMF’s involvement has been constructive rather than coercive. “It’s not as if they are attempting to force us into difficulties over some inflexible principle.

We were hesitant to take the plunge—they encouraged us, saying, ‘Come on, you can do it.'” “And ultimately, we succeeded. That’s it. We are grateful to the IMF.” When asked about the evolving relationships with India and China, Yunus responded, “We are reaching out to everyone. All the governments worldwide have been exceptionally supportive, and we are very appreciative. “We are now working to strengthen our relationships and seeking support in ways we hadn’t previously considered—support that was not accessible before,” he added.