Former caretaker government adviser Dr. Hossain Zillur Rahman has expressed serious concern over the growing culture of “ghost cases” in Bangladesh, stating that it has plunged the entire business environment into a state of deep uncertainty and stagnation.
Speaking at a dialogue of the Centre for Policy Dialogue (CPD) on the national budget at a city hotel on Sunday, Dr. Rahman warned that such politically motivated and baseless cases have paralyzed the business sector and created widespread fear.
“Just the other day, someone from Chattogram informed me that yet another case had been filed against him—a murder case with 110 accused, and he is number 95,” said Dr. Rahman. “With cases being filed so arbitrarily, we can no longer distinguish who is actually guilty. We have thrown a blanket of suspicion over the entire society. People are left with no choice but to stay silent and suffer.”
Dr. Rahman criticized the government for failing to act despite being fully aware of the situation. “It’s time we got angry,” he said. “And this is not irrational anger—this is a sacred rage, the kind that brings about societal change. The government appears to be suffering from a peculiar syndrome—I call it a new kind of ‘Kumbhakarna Syndrome’: they hear, but they do not respond.”
He criticised the government’s current approach to reform, saying, “The entire prioritisation of reforms is on a few constitutional reforms. But by reform, we understood judicial reform, educational, health, and institutional reforms. But these have gone out of focus.”
On the subject of the recently passed national budget, Dr. Rahman said bold political initiatives are necessary to drive major changes. “Many say there are four economists in the current Advisory Council. Yet we have another conventional budget. Even if all members were economists, nothing would change unless there is political courage to make bold decisions.”
Saying that the education and health budget focused on building infrastructure, he emphacised that the demand of the time is that Bangladesh spend money on education to create human capital.
He added that more attention should have been given to non-tax revenue as a major source of domestic revenue.
Zillur said new growth drivers must be identified, with agriculture being a major potential sector. “There is potential in pharma and ICT. However, the next growth driver will be agriculture. For that, necessary initiatives are needed. And immediate initiatives are needed to reduce corruption. The time has come for a change in mindset.”
The dialogue was chaired by CPD Distinguished Fellow Dr. Mustafizur Rahman, with CPD Executive Director Dr. Fahmida Khatun presenting the keynote paper.
Business Sector Discontent
Also speaking at the event, Bangladesh Textile Mills Association (BTMA) President Shawkot Aziz Russell expressed frustration over the current financial governance and banking practices.
“We are going through a very uncomfortable time,” he said. “Models are being developed that allow those who loot to be protected. For example, if someone embezzles money, Bangladesh Bank ensures that the looted money ends up back in the banks. The banks commit the theft, and we end up compensating them with high-interest payments. Why should I pay extra so the government can subsidize stolen funds?”
Aziz noted that to date, not a single bank official or corrupt borrower has faced jail time. “The bigger the thief, the more ‘transparent’ they appear to be—this is the reflection we are seeing in our society.”
Concerns Over Tax Structure
Dr. Mustafizur Rahman pointed out a structural imbalance in the country’s tax system. “In most countries, direct taxes make up the majority of government revenue. But in Bangladesh, indirect taxes—mostly paid by ordinary people—account for two-thirds of the revenue, while only one-third comes from direct taxes,” he explained.
He stressed that the philosophy of any national budget should be redistribution of resources—taxing the wealthy and spending on the poor through sectors like education, health, and social protection. “From that perspective, this budget has not brought significant changes. We had high hopes for a transformative budget post-July–August. But this one has failed to break the vicious cycle.”
Maintaining Stability Remains the Core Challenge
In the keynote paper, CPD Executive Director Dr. Fahmida Khatun emphasized that the budget was formulated amid ongoing economic challenges and crisis conditions.
“Over the past three years, Bangladesh’s economy has been under pressure. Key macroeconomic indicators have been trending downward. This budget was prepared amid high inflation, declining reserves, and vulnerabilities in the banking sector. Setting priorities under such circumstances was a challenge,” she said.
Dr. Khatun warned that the macroeconomic projections in the budget seem overly ambitious. “Most indicators are on a downward path. Only exports, remittances, and reserves show some promise. The exchange rate is becoming more stable, but private sector investment is almost stagnant. Revenue mobilization remains weak, and energy demands are not being met.”
Referring to growth projections, she pointed out a mismatch. “The GDP growth target for 2026 is set at 5.5%, up from the revised 5% for 2025. Yet the Bangladesh Bureau of Statistics (BBS) recently reported actual growth at 4%. To jump from 4% to 5.5%, substantial investment will be required.”
She raised concerns about where this investment would come from, noting that private investment remains sluggish. “The government is currently the main driver of investment, with the private sector largely inactive. Achieving the targeted 24.3% private investment-to-GDP ratio would require an additional Tk 1.62 trillion—12% more than normal levels. Given the ongoing crisis, such a leap seems highly unrealistic.”