Khorshed Alam, the 5th Governor of Bangladesh Bank, was a distinguished civil servant, economist, and diplomat whose career spanned over four decades of dedicated service to Bangladesh. His impactful tenure as the Governor of Bangladesh Bank (from December 20, 1992, to November 21, 1996) brought significant reforms in the country’s financial sector, including foreign exchange liberalization and strengthening of the banking system. Beyond his professional accomplishments, Mr. Alam was a scholar, an ambassador, and a pioneer in rural development. His legacy remains deeply rooted in the administrative and economic foundations of Bangladesh.
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Early Life and Education
Khorshed Alam was born on January 15, 1935, in the village of Ramnagar in the Narsingdi District. From an early age, he displayed remarkable academic excellence. He began his academic journey at Dhaka Collegiate School in 1940, where he earned a Dhaka Divisional Scholarship in 1944, securing the 3rd or 4th position in the merit list. He then attended Manikganj Government High School and A. A. I. High School in Brahmanbaria, where he ranked 3rd in the board’s merit list in 1949.
Mr. Alam pursued higher education at the University of Dhaka, where he obtained a bachelor’s degree in Economics in 1954, ranking 2nd class and 3rd position. He went on to complete his master’s in Economics from the same university in 1955, ranking 2nd class and 4th position. In June 1959, he earned a Diploma in Public Administration.
Mr. Alam’s quest for knowledge extended internationally. He completed a master’s in Public Administration from Harvard University’s Kennedy School of Government in 1971. He also began pursuing a Ph.D. at Tufts University in 1972 but returned to Bangladesh on government orders during the Liberation War, foregoing antedated seniority for his time abroad.
Professional Journey
Early Career and Civil Service
Mr. Alam’s professional career began humbly as a voluntary Head Master of Daulatakandi Mohiuddin Bhuiyan High School after completing his master’s degree in 1956. In September 1957, he joined the Civil Service of Pakistan, where he quickly rose through the ranks:
- Assistant Magistrate and Collector in Rajshahi (1959)
- Sub-Divisional Officer in Thakurgaon (1960)
- Deputy Registrar in the Department of Cooperatives (1961)
- Additional Deputy Commissioner in Pabna
- Joint Registrar in the Department of Cooperatives (1962)
- Private Secretary (PS) to the Minister of Commerce (1964)
He also served as Deputy Director at the Bureau of National Reconstruction and later became Deputy Secretary in the Ministry of Information and Radio.
Senior Administrative Roles
Between 1966 and 1969, Mr. Alam held key administrative roles, including:
- Deputy Chief of the Planning Division
- Deputy Commissioner in Pabna, Mymensingh, and Chittagong
- Acting Additional Secretary at the Ministry of Basic Democracy and Local Government (1969)
Following Bangladesh’s independence, he was appointed Secretary to the Ministry of Information and Radio in 1972.
Pioneering Rural Development and Cooperatives
From 1974 to 1978, Mr. Alam served as Secretary to the Ministry of Local Government, Rural Development, and Cooperatives. During this period, he:
✅ Introduced training programs for Union Parishad Chairmen.
✅ Played a key role in establishing the Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP).
Mr. Alam’s expertise in rural development positioned him as a key figure in shaping Bangladesh’s cooperative and local governance structures.
International Representation and Diplomatic Service
Khorshed Alam’s influence extended beyond Bangladesh’s borders when he was appointed as Ambassador to Turkey, Lebanon, and Syria from 1986 to 1988. His diplomatic tenure strengthened Bangladesh’s bilateral ties with these nations.
Governor of Bangladesh Bank (1992–1996)
Khorshed Alam’s tenure as the 5th Governor of Bangladesh Bank marked a period of crucial financial reforms and stabilization. His key achievements included:
✅ Liberalization of Foreign Exchange Transactions – Made current account transactions fully convertible, strengthening Bangladesh’s trade and financial standing.
✅ Strengthened Banking System Inspections – Improved banking transparency and accountability through revised inspection protocols.
✅ Introduction of Loan Classification Rules – Established clear guidelines for loan classification and recovery, reducing non-performing loans.
✅ Devaluation of the Taka (BDT) – Ensured support for export-oriented industries during economic challenges.
✅ Boosted Foreign Trade and Investment – Secured financial aid and support from the International Monetary Fund (IMF) and the World Bank.
Mr. Alam’s financial leadership positioned Bangladesh for increased economic resilience and growth in the years that followed.
Contributions to Higher Education and Public Institutions
Mr. Alam served as:
- Chairman of Bangladesh Krishi Bank
- President of the Inter-Ministerial Committee for Privatization (1992)
- Chairman of the Board of Trustees at the University of Asia Pacific (1996)
His leadership helped strengthen Bangladesh’s financial institutions and higher education infrastructure.
Scholarship and Thought Leadership
Khorshed Alam authored two notable books:
📖 An Autobiography – Offering a personal reflection on his life and career.
📖 Economic Landscape of Bangladesh – Providing insights into Bangladesh’s financial and economic history.
His intellectual contributions reflect his deep understanding of Bangladesh’s economic and social fabric.
Family and Personal Life
Khorshed Alam was married to Jahanara Alam, and they had four sons. His younger brother, Bir Sreshtho Flight Lieutenant Matiur Rahman, is honored as a national hero for his sacrifice during the 1971 Liberation War.
Mr. Alam believed in lifelong learning and service. His personal motto, “Learn-Share-Grow,” guided his professional and personal endeavors.
Training and Professional Development
Throughout his career, Mr. Alam pursued various professional training programs:
- Oxford University – Authored a thesis on the National Income of Pakistan.
- Lahore Academy – Civil service training.
- FAO Fellowship (1962) – Studied cooperative practices in Switzerland, West Germany, Denmark, Sweden, and Egypt.
Legacy and Passing
Khorshed Alam passed away on July 28, 2021. His life’s work left an indelible mark on Bangladesh’s economic and administrative landscape.
Mr. Alam’s contributions to Bangladesh Bank, rural development, and international diplomacy remain influential to this day. His legacy serves as a guiding example of leadership, integrity, and vision.
Khorshed Alam’s journey reflects the extraordinary impact of a life dedicated to public service, governance, and economic reform. His legacy continues to inspire future generations of leaders and policymakers in Bangladesh and beyond.