There were high hopes among people for an end of disparity immediately after the fall of Hasina’s regime, but the interim government could live up to that expectations despite some gains in its one year term, according to the Centre for Policy Dialogue (CPD).
“During the past one year, the interim government managed to achieve some macroeconomic stability but that has not been translated into investments and job creation,” said Prof Mustafizur Rahman, CPD’s distinguished fellow, at a dialogue held at a city hotel on Sunday to assess performance of the interim government for the last 365 days.
The think tank says boosting private investment is vital for spurring economic growth and employment generation. For doing so, it suggested consolidating the achievements so far and addressing the underlying fragility of the economy
Presenting the keynote paper, CPD Executive Director Fahmida Khatun said that the recommendations made by the task force formed to redefine economic strategies and mobilize necessary resources for inclusive and sustainable development have not been implemented.
“There is no visible progress in implementing the recommendations of the commissions on the labour sector, media, women, and health reforms. And in the case of education, no commission has even been formed,” she noted.
Addressing the dialogue as a special guest, BNP Standing Committee member Amir Khasru Mahmud Chowdhury said Bangladesh is overly burdened with regulations, and serious deregulation is essential to attract investment and accelerate economic growth.
According to him, the over regulation only require more role of the bureaucracy, which, he says, is the main source of corruption and the oligarchic system.
“Starting a restaurant requires 19 different approvals — this kind of over-regulation exists across all sectors and discourages investment,” he said. “Without meaningful deregulation, nothing will change.”
Khasru argued that the interim government environment discourages investor confidence and pointed out Bangladesh’s poor ranking in the global ease of doing business index.
He insisted that a demographic transition is must as soon as possible after any uprising, otherwise the country may face civil war or a deep dent in economy.
On economic priorities, he advocated for skill development and the promotion of a creative economy that connects marginalised groups to global markets. He also suggested expanding the tax net through economic growth, not by burdening existing taxpayers.
Bangladesh Bank Governor Dr Ahsan H Mansur mentioned that the interim government’s attached it first priority to macroeconomic stabilization and financial sector reforms.
Instead of forming a banking commission, they prioritized already identified quick reforms in order to take immediate actions for the weak financial sector.
Besides trying to streamline the banking sector and forex market, the government has so far repaid $3.5 billion dues so that trade financing does not get choked, he pointed out.
President of the Bangladesh Textile Mills Association (BTMA), Mohammad Shawkot Aziz Russell, has strongly criticised the interim government’s lack of support for the textile sector, despite its acknowledged role in sustaining the economy during crises.
“Governor said the workforce and garments sector saved the economy during tough times. But my question is: what has been done for us in the past 365 days?” Russell told event.
He noted that during the interim government’s tenure, the corporate tax for the textile sector was raised from 15% to 37%. While finished products are being allowed into the country duty-free, a 2% duty has been imposed on raw materials like cotton.
“On top of that, extortion continues. There’s no gas, no electricity. I haven’t seen anything magical in the last year,” he said. “This is constructive criticism, not a rebuke.”
He revealed that the number of factories in his sector has actually declined over the past year. “We had 1,850 factories. That number has not increased to 1,851 — in fact, it has decreased. That’s the reality. There has been no policy reform.”
Addressing the issue of financial sector mismanagement, Russell questioned the continued bailout of troubled banks.
Instead, he proposed expanding branches of well-performing banks to preserve employment. “In a small country like Bangladesh, the sheer number of banks is astonishing. No other country issues bank licenses like this — it’s as if hitting a six in cricket earns you one.”
Labour leader Razequzzaman Ratan also voiced concern over increasing political intolerance. “Criticising the previous government meant you were called anti-liberation. Now you’re labeled a fascist sympathiser. Why only go after the accomplices — why not confront the masterminds?”
He called for open discussions on the role of extortion in the economy, politics, and society. “Every year, extortion amounts to Tk 1.8 trillion. We need to examine how this affects politics and the daily lives of citizens,” he said.