The fact that the government has recognised state-owned banks for the loss-making institutions they are is a crucial step in the right direction.
Even more heartening is the fact that Finance Minister AMA Muhith has hinted at the prompt privatisation of loss-making SoBs.
Needless to say, this has been a long time coming.
These institutions have been making continuous losses since the start, registering a net loss of over Tk 500 crore last year alone.
This was one more example of tax-payer money not being spent efficiently.
SoBs have been bleeding the economy for a while now, and it is encouraging to see our finance minister declare their weakness unequivocally.
They have long been run poorly, to put it charitably, with mistake being piled on mistake, inexcusable decision after decision..
As such, it makes no sense to continue to prop up these poorly-run institutions at the cost of hard-earned tax-payer money, money which could be better spent in literally any other sector, be it health, education, infrastructure, or what have you.
Acknowledging the problem, however, is just the first step.
It is up to the administration now to ensure that any plans to privatise SoBs are seen through without delay and any sort of intervention.
Coddling SoBs, especially for a nation such as ours, which is focusing on achieving middle-income status within the next few years, is no longer an option.
Proper planning and implementation are key and the government would do well to make sure that public funds are no longer wasted in fruitless endeavours such as these.
It is high time that the government finally cut the cord on these loss-making institutions and paved the path for a more efficient and effective use of public money.