The Centre for Policy Dialogue (CPD) believes that economic reforms cannot be achieved without political reforms.
At a media briefing on Wednesday, the private think tank said despite a change in power, signs of improvement in the macroeconomy are yet to be seen in the current fiscal year.
At the event, CPD’s executive director, Fahmida Khatun presented a keynote paper titled “Bangladesh Economy 2024-25: Challenges of Meeting Expectations in a Time of Crisis.”
“Economic reforms cannot be implemented without political commitment, as it is necessary to counteract powerful vested interest groups,” Dr Fahmida said.
The media briefing was organised under CPD’s flagship Independent Review of Bangladesh’s Development (IRBD) programme.
While explaining current economic challenges, Dr Fahmida pointed out that investment in the country is declining, and unemployment is rising, with uncertainty, lack of confidence, and reduced consumer demand being the key factors behind economic instability.
She also observed that the prices of essential commodities are high due to failure to control the extortion and hoarding.
In view of this, she said, “Elections should be held as soon as possible. A timeline has been provided, and I believe the government will make its decision based on careful consideration.”
Therefore, in addition to enhancing institutional capacity, maintaining internal discipline, and promoting good governance, political commitment is essential to ensuring sustainable reforms, she noted.
Considering the multidimensional nature of the ongoing economic challenges, a three-pronged approach can be adopted, suggests the CPD.
The primary reason behind the July movement was a lack of employment opportunities, which stemmed from the previous government’s discriminatory policies, it stated.
Fahmida Khatun noted that, according to the Ministry of Finance, total revenue collection growth stood at 3.7 percent until October of the 2025 fiscal year, compared to 17.7 percent during the same period in the previous fiscal year.
Meanwhile, foreign investment is experiencing a downturn. Additionally, due to prevailing uncertainties, businesses lack the confidence to invest through borrowing. At the same time, the government’s growing reliance on domestic sources of financing is expected to have an overall negative impact on the economy.
CPD’s executive director stated that in order to tackle Bangladesh’s economic challenges, the interim government must adopt a balanced and effective strategy in the coming months. This strategy should simultaneously address immediate crises while initiating medium- to long-term reforms for implementation by the next politically elected government.
