Bangladesh Bank has reportedly inflated net foreign direct investment (FDI) figures by $5.7 billion during the fiscal years 2019-20 to 2022-23. This discrepancy emerged from data provided by central bank sources.

According to official figures, Bangladesh actually received $5.86 billion in net FDI during the mentioned period. However, the central bank’s records showed an inflated figure of $11.56 billion.

Regarding this matter, Bangladesh Bank Executive Director and spokesperson Husne Ara Shikha told reporters, “The inconsistency surfaced after revising the data from FY 2019-20 based on the IMF’s BPM 6 guidelines. The IMF had raised observations about the previous data, prompting us to make corrections. As a result, FDI inflow figures have dropped significantly.”

White Paper Reveals Banking Sector Irregularities

A recent report by the White Paper Drafting Committee on the country’s economic situation highlighted several irregularities during the tenure of the previous Awami League government. According to the report, amendments to banking laws were politically motivated, favoring influential individuals. Central bank lending policies were also altered to benefit specific groups, and independent directors failed to fulfill their responsibilities.

The report also noted that both internal and external auditors did not perform their duties adequately. New banking licenses were granted based on political considerations. Over the last decade and a half, corruption in the banking sector has reached unprecedented levels, leaving the sector in a dire state.

The committee reviewed financial statements of 10 banks, including two state-owned and eight private banks. Most of these private banks operate on Shariah principles. These 10 banks collectively hold 33% of the sector’s loans and 32% of deposits.

The committee concluded that these banks are technically bankrupt, with no liquidity available. However, this reality has not been reflected in their financial statements.