In the absence of a clear economic policy, the interim government is managing the economy on an ad-hoc basis using fiscal strategies inherited from the previous administration, said Dr. Debapriya Bhattacharya, Distinguished Fellow at the Centre for Policy Dialogue (CPD).
“Economic reforms have received little attention from the interim administration. Current fiscal policies are simply a repackaging of the old structure—not the fresh direction we had hoped for,” he said on Monday while addressing a discussion organised by the Citizen’s Platform for SDGs, Bangladesh, at a Dhaka hotel.
Delivering the keynote at the event titled “Bangladesh Economy 2025–26: Policy Reforms and National Budget”, Dr. Bhattacharya underscored the government’s limited commitment to meaningful structural reforms.
He warned that without broader economic stability, any reform initiatives would likely be short-lived. “Ad-hoc policymaking, institutional stagnation, and weak governance are key obstacles to long-term economic transformation,” he noted.
He also highlighted the growing dominance of the bureaucracy in the current political landscape. “Under the Awami League, a kleptocracy emerged—an alliance of bureaucrats, businessmen, and politicians. Now, with politicians sidelined and businessmen weakened, bureaucrats have resurged with full force,” he said.
Criticising the government for its inaction on longstanding issues, Dr. Bhattacharya pointed to its unwillingness to implement the recommendations of various reform committees and policy task forces.
He specifically mentioned the failure to introduce a proposed two-year rolling national planning framework, calling it a missed opportunity to shift from outdated models to forward-looking governance.
“The signs of economic fragility are increasingly evident—from weak domestic investment and declining foreign investor confidence to an outdated fiscal framework,” he warned. “These are not temporary setbacks but indicators of deeper structural weaknesses.”
Inflation, he noted, remains a pressing concern, particularly for low-income groups. “With no significant wage adjustment, real income has declined, leaving ordinary citizens struggling with rising living costs,” he said.
Dr. Bhattacharya called for bold, strategic reforms grounded in transparent governance and inclusive policymaking. “Continuing on the current path risks derailing Bangladesh’s opportunity for an equitable and sustainable recovery,” he cautioned.
Flawed Execution of NBR Restructuring
Commenting on the recent bifurcation of the National Board of Revenue (NBR), Dr. Bhattacharya acknowledged that while the decision was consistent with CPD’s earlier policy recommendations, the implementation was problematic.
“The division of the NBR was sound in principle—it was one of our white paper proposals. But the way it was executed is unacceptable,” he said. The restructuring was carried out without adequate consultation with professionals or stakeholders, he added. “Instead of opening up space for expert engagement, the process has narrowed it—further centralising control and undermining autonomy.”
He stressed that how the NBR is restructured going forward will be critical. “We now need a transparent, consultative approach to ensure the reform serves its original purpose.”
Dr. Bhattacharya reiterated his concern that economic reform continues to receive less attention than other policy areas. “This lack of focus is troubling. Without economic stability, no other reform will be sustainable,” he said.
Despite these challenges, he identified four key factors that will shape the implementation of the upcoming budget: the outcome of political consensus talks, a roadmap for the next national election, clarity on justice proceedings, and the state of law and order.
Turning to investment prospects, Dr. Bhattacharya painted a bleak picture. “The core drivers of investment are not motivating. Job creation is stagnant, and inflation is eroding real wages. Can we genuinely say the economy is bouncing back? Not convincingly,” he said.
In contrast, Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser (Finance Division), called for a shift away from outdated perceptions and urged confidence in Bangladesh’s development journey. He linked today’s challenges to the absence of a fair and stable international economic order, arguing that this remains a major constraint for developing nations.
The seminar also featured BNP Standing Committee Member Amir Khasru Mahmud Chowdhury as a special guest and brought together economists, policymakers, and civil society leaders. The discussion focused on economic reforms and policy directions ahead of the upcoming fiscal year.