The ongoing financial sector reforms in Bangladesh are not solely driven by international organizations like the IMF and the World Bank—many are being undertaken by the government itself, said Finance Advisor Dr. Salehuddin Ahmed on Wednesday.
Speaking at the Audit and Accounting Summit held at a city hotel, Dr. Ahmed emphasised that although external agencies suggest reforms, the government also takes its own initiatives. “If they recommend good steps, why wouldn’t we consider them? But we are taking action on our own as well,” he stated.
The World Bank and Financial Reporting Council (FRC) jointly organised the summit with the theme “FRC’s Role in the Economic Governance of Bangladesh.”
Dr. Ahmed highlighted the importance of transparency and accountability in auditing and accounting. “The integrity of those involved is even more important than the process itself. Many institutions submit paperwork that lacks quality,” he noted.
He also pointed out the need for stronger audit practices in the National Board of Revenue (NBR). “It’s unbelievable that 70 out of 100 taxpayers report zero income. These claims must be audited thoroughly,” he said, adding that even the reported 1.8 million tax return filings could contain discrepancies.
Addressing the event as a special guest, Bangladesh Bank Governor Ahsan H Mansur stated that the audit reports of most banks contain cooked up data.
“We found that at the end of 2024, the non-performing loan (NPL) ratio was 4%. But after the following quarter, we found the ratio to be 36%,” he noted.
“The massive mismatch did not happen due to any regulatory issue. It happened only because of misreporting, which misled the facts and reality,” said the governor.
Emphasising the need for accurate and transparent audit reports to gain trust from both domestic and foreign investors, he said the Bangladesh Bank will work jointly with the Financial Reporting Council (FRC) to ensure that banks submit correct financial statements.
Mansur also warned that if current audit reports were used to make judgments, it would be difficult to find any truly honest auditors.
Another special guest, Anti-Corruption Commission Chairman Abdul Momen warned about the lack of integrity among some auditors. “If I were to judge today based on current audit reports, I wouldn’t find many honest auditors,” he said.
He referred to several scandals, including one involving IFIC Bank and business figure Salman F Rahman, who allegedly used inflated audit reports of a paper company to obtain funds. “Despite repeated financial irregularities during the previous administration, Bangladesh Bank failed to act,” he said.
While he commended the identification of top audit firms involved in cover-ups, he criticized the lack of concrete action against them.
Presenting the keynote paper at the event, FRC Chairman Sajjad Hossain Bhuiyan said as Bangladesh continues its journey toward becoming an upper-middle-income country, the need for resilient institutions and sound governance structures becomes more critical than ever.
“Among those institutions, the Financial Reporting Council stands with a clear mandate to promote integrity, discipline, and transparency in financial reporting, auditing, valuation, and actuarial standards,” he added.
He said FRC wants to encourage all corners to prepare true financial statements with full disclosure to maintain economic or revenue discipline as well as to collect a desirable and genuine amount of income tax and VAT by the NBR.
“Untrue financial statements are the basic instrument for tax evasion and avoidance,” he added.