Planning Adviser Wahiduddin Mahmud revealed on Monday that a substantial amount of money is being printed to safeguard the country's banking sector.

He made the remarks while speaking at an Iftar gathering of the Development Journalists Forum of Bangladesh (DJFB).

Wahiduddin emphasised the critical situation banks are facing and the government’s ongoing efforts to protect them.

The event, held at the NEC conference room in Dhaka’s Sher-e-Bangla Nagar, was attended by DJFB President Hamid-uz-Zaman and moderated by General Secretary Abu Hena Muhib. The welcome address was delivered by DJFB Vice-President Shahanuare Shaid Shahin.

Highlighting the growing challenges of maintaining stability in the banking system, the planning adviser acknowledged that safeguarding the banks has become increasingly difficult. He explained that the government is working tirelessly to keep them afloat though the situation remains dire.

He noted a significant decrease in the use of hundi (illegal money transfer systems), which has positively impacted remittance inflows.

He also mentioned a reduction in money laundering activities, although its tangible effects remain unclear.

While expressing optimism, Wahiduddin stressed the need for a comprehensive roadmap for long-term recovery and stability, which, he cautioned, cannot be achieved within a one-year framework.

On foreign investment, he expressed concerns, noting that the current economic environment would likely deter foreign investors. Despite this, he pointed to a positive trend in export earnings and a decline in commodity prices, suggesting some resilience in the economy.

The adviser also underscored the importance of transparency in government activities, particularly within the Planning Commission.

He criticised the economic strategies of the previous government, saying that the country was on the brink of economic collapse due to excessive money printing, money laundering, and depleted reserves.

According to the adviser, these issues left the banking sector in a precarious position, with banks nearing insolvency in the final stages.