Indian LoC projects won’t be cancelled abruptly: Salehuddin

Ongoing projects under the Indian Line of Credit (LoC) will not be discontinued, Finance Adviser Dr. Salehuddin Ahmed has reassured.

He said this while briefing reporters on Wednesday after a meeting of the Advisory Council Committee on Government Purchase at the Secretariat

“Projects are undertaken for economic benefit, but cancelling them is a delicate issue. I’m proceeding cautiously and won’t make hasty decisions,” he said.

Addressing concerns about the government’s stance on LOC projects, Salehuddin said, “There’s been much discussion about the LOC. It’s assistance tied to a specific country. Delays might suggest doubts—some call for stopping them entirely—but these projects are necessary. India is providing support, and we’ve decided to move forward.”

He emphasised that progress, though gradual, is underway. “We’ll see it go from zero to one or two soon. For now, there’s no blanket closure. Beyond economics, this involves bilateral relations. When dealing with another country’s government or private sector, we don’t view aid solely through an economic lens.”

Iterating his cautious approach, he added, “Cancelling a project is sensitive. We’re neither rushing to abandon nor hastily adopt anything.”

Responding to broader economic questions, Ahmed dismissed notions of a collapsing economy. “It’s not that the economy is in dire straits. Business has slowed, and income sources have dipped, but we’ve steered it away from total ruin.”

He acknowledged challenges, however, noting, “New employment is declining—we’ve flagged this to ECNEC. We’re working to boost business and trade, which are critical. Recently, we directed Bangladesh Bank to extend loans to small and medium enterprises (SMEs) in the SME sector. Still, we recognize some people are struggling. Income remains a bigger issue than prices.”

On the garment sector, he said, “We’re providing cash incentives to garment businesses. Some face internal management issues or lack of demand, and we’re addressing that.”

He also touched on the closure of 14 institutions from the previous government, including Beximco-related entities.

“Beximco’s situation is unique—stemming from corruption and mismanagement. It’s not the government’s role to shoulder private burdens. Public funds are for health, education, and social needs, not private failures. We’re monitoring the workers’ plight, engaging with BIDA and export processing companies to explore relocation options," he added.

Regarding market management, Ahmed expressed measured satisfaction: “I’m content with the market system, though it could improve. Many product prices are lower than last year.”

Asked about a potential LNG crisis amid rising heat, he reassured, “There’s no risk of an LNG shortage. Today, we approved importing LNG in two lots. We’re committed to maintaining supply, regardless of challenges.”