Economy cannot function by shutting down companies: Finance Minister in Parliament

Finance Minister Amir Khosru Mahmud Chowdhury has stated that if a company is closed down, its impact on the nation’s economy must be calculated. Economy does not run on emotion; it must operate on the foundation of law.

The finance minister made these remarks today, Sunday, during the Question Hour at the start of the parliamentary sitting chaired by Deputy Speaker Kayser Kamal, responding to a supplementary question from NCP (National Citizen Party) member of parliament Abdul Hannan Masud regarding the decision to issue new loans to various entities owned by the S. Alam Group instead of putting them up for auction.

In his supplementary question, Hannan Masud stated that Bangladesh now ranks as a global leader in default loans. Bangladesh Bank granted permission to SS Power—an entity owned by S. Alam Group, one of the top loan-defaulting conglomerates—to open an LC worth $31,97,561. Currently, total loans held under various entities owned by the S. Alam Group exceeded Tk 225,000 crore.

He asked the minister whether the government, by extending special loans rather than auctioning off or nationalising these defaulting entities, is effectively encouraging loan defaulters and whether this would disincentivise foreign lenders in various sectors.

In response, the finance minister stated that there are established principles for managing the economy and financial sector, noting that the identity of an individual is separate from the identity of an institution.

Pointing out that the company owner is facing trial over corruption allegations, the minister said, “If an individual is involved in corruption, you can file a case against them, send them to prison, or even execute them. But the company is a legal body—the company must be treated separately... its operations must be allowed to continue, regardless of which company it is.”

The finance minister further said, “If any company in the country is shut down due to an individual, remember that people work at that company, it has liabilities, and its loans must be repaid. That company contributes to the economy. No country's economy can function by harming employment and shutting down companies.”

He added that those involved in corruption within the company are not being spared, with legal proceedings underway against every one of them. They will be tried for their personal corruption.

Asserting that Bangladesh Bank is not extending loans in violation of the law, Amir Khosru Mahmud Chowdhury stated that rescheduling is permitted where provisions exist. Companies that qualify under the law will avail themselves of that opportunity, while those that do not qualify will not. However, those who are personally corrupt will face justice. Their trials are underway and will continue.

Finance Minister Amir Khosru Mahmud Chowdhury informed Parliament that default loans across six state-owned banks stood at Tk 147,776.36 crore (as of 30 June 2026). These institutions are Agrani, Janata, Rupali, Sonali, BASIC, and Bangladesh Development Bank.

The finance minister provided this data in response to a question from Jamaat-e-Islami member of parliament Md. Abdul Alim.

According to the figures presented, Janata Bank holds the highest volume of default loans among the state-owned banks, amounting to Tk 75,396.67 crore. Additionally, default loans stand at Tk 29,029.67 crore for Agrani Bank, Tk 19,281.74 crore for Rupali Bank, Tk 15,048.39 crore for Sonali Bank, Tk 8,131.09 crore for BASIC Bank, and Tk 888.79 crore for Bangladesh Development Bank.

In response to a query from Reza Ahammad (Kushtia-1), Finance Minister Amir Khosru Mahmud Chowdhury revealed that the per capita debt burden of the country’s citizens currently stands at Tk 129,239 (as of 31 March 2026).

The finance minister explained that to ease the per capita debt burden on the public, the government is focusing on enhancing revenue collection, ensuring sound and efficient public financial management, and streamlining debt management.

According to him, initiatives are being undertaken to reduce borrowing needs by boosting state revenues. Simultaneously, emphasis is being placed on making government expenditure more cost-effective and productive, while curbing non-essential spending to lower financing demand.

Overall, through a coordinated strategy involving revenue generation plans, expenditure and debt cost control, improved cash management, and market-based debt management, efforts continue to minimise borrowing needs and reduce the long-term debt burden on citizens, he stated.

Replying to a question from Nurul Islam (Chapainawabganj-3), the minister stated that in negotiating loan and financing terms with development partners, the incumbent government places top priority to the public and national interest. 

He further said the government has not adopted any policy to abruptly withdraw all subsidies across sectors like power and energy. Crucial assistance continues to be provided in key sectors such as agriculture, food, and electricity.

Regarding financing from development partners, the government’s position is to formulate and implement reforms in a phased manner, aligned with national interests, fiscal capacity, and social realities.

In response to a question from Farida Yasmin (reserved seat), Amir Khosru Mahmud Chowdhury stated that between 2010 and 2024, a total of 2518.668 kg of gold and 377.348 kg of silver were confiscated from smugglers.