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A defining crossroads: Bangladesh’s journey through 2025

BSS
Published :
Dec 31, 2025 21:05
Updated :
Dec 31, 2025 21:05

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Bangladesh bade farewell to 2025 standing at a crossroads expecting to lead the South Asian nation to a new political and social transition against the backdrop of renewed public expectations. The year unfolded amid post–July Uprising realities, with governance reforms, electoral preparedness, and democratic accountability dominating the national discourse.

The outgoing year heralded with youths as vocal stakeholders in shaping the nation’s future, which many describe as demographic dividend for the country in terms of population ratio as well.

This development particularly made 2025 a year of reckoning and reorientation for Bangladesh, expecting to set the tone for the path ahead.

Following were the major incidents of 2025:

Begum Zia’s demise:

A sad episode, however, marked the year end as the country lost former prime minister and Bangladesh Nationalist Party (BNP) Chairperson Begum Khaleda Zia on December 30.

During her strongly visible presence in the country’s political landscape for over four decades Begum Zia lived with dignity and demised with honour though her career included spells in prison and house arrest.

Begum Zia was the first woman prime minister of Bangladesh and the second in the Muslim world though her appearance as a public figure in political arena at the age of 35 was not planned debut and rather is widely viewed as accidental.

But she broke through a male-dominated political landscape and transformed into one of the region’s most formidable leaders though as the wife of Bangladesh’s slain former president Ziaur Rahman, she was a reserved presence alongside her famous husband.

Thrust into the political scene following her husband’s 1981 assassination, she took up his mantle, quickly learnt the art of politics and leadership and gained a nationwide with her uncompromising stance against the military dictatorship, maintaining her widely acknowledged kindheartedness.

The public in general call her “Uncompromising Leader” and her demise prompted a leading newspaper to make the headline of her obituary report—“Khaleda Zia: The uncompromising light goes out”, as doctors declared her dead at the dawn of December 30, at the age of 80 after her protracted ailments.

Apart from countrymen and people cutting across their political affiliations, she drew tributes from international leaders including premiers of India and Pakistan – the two bitter adversaries – who promptly issued statements mourning her death soon after the news of her demise broke.

All major media outlets across the globe prominently carried the report highlighting her achievements as the South Asian nation’s leader while Bangladesh observes a three-day state mourning from December 31.

The three-time premier Begum Zia made her last public appearance on December 21 when she joined the Armed Forces Day reception at Dhaka Cantonment and two days later she was admitted to Dhaka’s Evercare Hospital.

She breathed her last at the facility five days after the return of her elder son Tarique Rahman, BNP’s Acting Chairperson, after 17 years of self-exiled life in London.

Her Namaj-e-Janaza drew millions of people while prominent foreign dignitaries attended the funeral at the Manik Mia Avenue. Begum Zia was buried beside the mausoleum of her slain husband Shaheed President Ziaur Rahman at the nearby Zia Udyan.

Signing of National July Charter:

On October 17, the landmark “July National Charter-2025” was signed after a protracted consultation between the political parties and the National Consensus Commission, headed by interim government’s Chief Adviser Professor Dr Muhammad Yunus.

During the signing ceremony Nobel Peace Prize winner Professor Yunus said Bangladesh “embraced civilization” with the signing of the document and described the ceremony as the “birth of a New Bangladesh”.

“We were living in a barbaric world where there was no law . . . Now we have come into civilization,” he said as senior representatives of different political parties inked the deal at an historic event at the South Plaza of the Jatiya Sangsad Bhaban in the capital.

The 40-page charter outlines the political history of Bangladesh, covering the British colonial period, the historic Language Movement of 1952, the education movements of 1962, the autonomy movement of 1966, the 1969 mass uprising, the 1970 general elections and the subsequent Liberation War of 1971.

The document noted the one-party state through constitutional amendments in 1975 that followed various political developments, the subsequent return to democracy through 1979 elections after reintroduction of a multi-party system in 1978. The charter, however, pointed out that described the democratic path was “short-lived.”

It further highlights the period between 2009 and 2024, as a timeframe when state institutions were dominated by autocratic practices favoring certain individuals, families, and groups.

The charter criticized the three consecutive controversial elections of 2014, 2018, and 2024, saying they undermined the electoral system, politicized the judiciary, law enforcement and public administration and facilitated corruption.

The charter also reflects on the persistent democratic movements of the last 16 years, including road safety movement in 2018, subsequent anti-quota movement, and student-led Anti-Discrimination Movement, which culminated in the broad-based mass uprising against fascism in July 2024.

Finally, the charter contains a seven-point commitment, urging the signatory political parties to uphold it as the will of the people expressed in the July 2024 Uprising ad grounded in democratic principles and national consensus.

Launching of NCP:

On February 28, National Citizen Party (NCP) comprising the students and youths who spearheaded the 2024 July Uprising emerged as a political party vowing to pursue politics of national unity over division and to materialize their vision for a “second republic”.

July martyr Ismail Hossain Rabbi’s sister Mim Akhter announced the top leadership of the NCP central committee at its inaugural rally at Manik Mia Avenue in front of Jatiya Sangsad Bhaban in the capital with one of the top July Uprising leader Nahid Islam as its convener and Akhter Hossen as Member Secretary.

Unveiling of the July Declaration:

On August 5, Professor Yunus unveiled the ‘July Declaration’ before the nation at a public gathering at South Plaza of the Jatiya Sangsad (JS) Bhaban. The event was arranged commemorating the July Uprising Day.

Tarique Rahman’s homecoming:

Bangladesh’s transitional political landscape witnessed a significant event when Bangladesh Nationalist Party (BNP) Acting Chairman Tarique Rahman returned to Bangladesh on December 25 after 17 years in exile in the UK.

Hundreds of thousands of people welcomed him rallying on the streets stretching from Hazrat Shahjalal International Airport to July 36 Expressway, popularly known as 300-Feet Road, where he addressed a mammoth public reception.

Coming out from the airport building he touched in barefoot the soil with dew dropped grasses, grasped a fist of soil, brought it to nose and sniffed before traveling to a brief public event venue at July 36 Expressway.

A motorcade escorted Tarique Rahman’s bus to the venue as millions of people standing on the both sides of airport road bound to the 300-feet waving hands and chanting slogans like ‘Tarique Rahman Asche, Ma-Mati Dakche’, ‘Desh Neta Asche, Bangladesh Kapche’ and ‘Ajker Ei Din e, Shaheed Zia Mone Pore’.

With waving hands and smiling face onboard a bus he responded to the crowd making an extra-ordinary emotional scenario and after reaching the reception venue he said “I have a plan” to build a developed and prosperous Bangladesh with collective efforts of all, calling upon all to maintain peace and order at any cost.

“We want peace . . . we want to build a safe Bangladesh for all. We have to keep calm and patience in facing any provocation,” he said.

Referring to a popular quote from US civil right activist Martin Luther King “I Have a dream”, Tarique Rahman said, “I have a plan for the people of my country and for my countrymen” and sought people’s cooperation to realize his plan.

Disbanding of Awami League:

On May 12, the government banned all activities of deposed prime minister Sheikh Hasina’s Awami League and its associated and affiliated organizations under Bangladesh’s tough Anti-Terrorism Act, on allegations of killings, genocide, crimes against humanity, and other grave offences to tame the July uprising, issuing an executive order.

Coinciding with the order the Election Commission (EC) on the same day suspended Bangladesh Awami League’s registration disqualifying it from contesting the upcoming general elections.

Sheikh Hasina’s trial:

On November 17, the International Crimes Tribunal (ICT-BD-1) sentenced to death deposed premier Sheikh Hasina and former home minister Asaduzzaman Khan Kamal after their trial in absentia.

The three-judge panel headed by Justice Golam Mortuza Mozumder convicted them on charges of committing crimes against humanity on grounds of superior command responsibility for offences committed during the July Uprising.

The tribunal simultaneously handed down a five-year prison term to co-accused police’s former inspector general (IGP) Chowdhury Abdullah Al-Mamun as he faced the trial in person under custody and appeared as an “approver” or state witness confessing his guilt.

Osman Hadi killing:

The fag-end of the year witnessed the fatal attack on Sharif Osman Hadi, the leader of cultural group Inqilab Mancha, imbued with the July Uprising spirit, and his subsequent death on December 18, sparking a nationwide protest and uproar.

Masked gunmen shot Hadi, a ranking leader of the July Movement as well, in the head and six days later he died at a Singapore Hospital where he was flown under government arrangements for advanced treatment.

Following his death Bangladesh observed a state-mourning on December 20 as declared by Chief Adviser Professor Yunus, who immediately after Hadi’s death appeared on the TV to make a nationwide address.

“Today, I came before you with very heartbreaking news. Sharif Osman Hadi, the fearless frontline fighter of the July Uprising and spokesperson of the Inqilab Mancha, is no more among us,” he told the nation.

Hadi’s namaz-e-janaza at the South Plaza of Jatiya Sangsad Complex drew tens of thousands of people on December 20 while it joined as well by the chief adviser and his advisory council members and senior government officials in civil and military services while he was buried later beside National Poet Kazi Nazrul Islam’s Mausoleum on the Dhaka University campus.

Milestone School Tragedy:

On July 21, a Bangladesh Air Force training jet crashed into a building on the campus of Milestone School and College at Diabari of the capital’s Uttara area killing at least 36 people mostly school children with rests being staff, teachers and the fighter jet’s pilot.

Over 170 people were injured, with many suffering severe burns; hospitals, especially the National Institute of Burn and Plastic Surgery, were overwhelmed with patients.

On July 22, the nation observed a one-day state mourning over deaths and injuries in the tragic crash of training jet while the tragedy sparked public outrage, with families and guardians demanding justice, proper compensation, and relocation of the school away from the flights path.

Earthquake:

At least 10 people including two children were killed several hundreds wounded on November 21, as a 5.7-magnitude earthquake with its epicenter being at Madhabdi of Narsingdi, 13km east off the met office’s seismic centre at Agargaon in Dhaka shook the capital and several other parts of the country.

The United States Geological Survey (USGS), however, confirmed that the epicentre of the tremor occurred at 10:38 am was located 14 kilometres west-southwest of Narsingdi, 10 kilometres beneath the surface level.

Buildings in Dhaka and neighboring districts suffered cracks, partial collapses and structural damages while the few seconds jolt prompted people inside concrete structures to rush outdoors in panic amid expert fears that had the tremor lasted for few more seconds it could have caused a greater havoc.

The country thereafter experienced few more subsequent quakes.

Student union elections in universities:

After a long impasse, authorities staged central student union elections at premier Dhaka University, Jahangirnagar University, Chittagong University and Rajshahi University in September and October.

Long-awaited Dhaka University Central Students’ Union (DUCSU) elections were held on September 9 after a six-year pause.

Chittagong University Central Students’ Union (CUCSU) and Rajshahi University Central Students’ Union (RUCSU) elections were held on October 15 and 16 respectively after long 35 years while Jahangirnagar University Central Students’ Union (JUCSU) polls were held on September 11 after 33 years.

Jagannath University Central Students’ Union (JnUCSU) staged its first such election on December 30.

Bangladesh women football team’s success:

On July 2, Bangladesh women’s football team created history by qualifying in the AFC Women’s Asian Cup 2026 for the first time following their outstanding 2-1 triumph over host Myanmar in their second group match held at the Thuwunna Stadium in Yangon.

The success earned the team the Ekushey Padak 2025.

Bangladesh’s U-20 women’s football team won the 2025 SAFF U-20 Women’s Championship, held from July 11 to 21 at the Bashundhara Kings Arena and Sports Ground in Dhaka.

The hosts emerged unbeaten champions, securing their fifth title with six consecutive wins in a double round-robin format.​
 
World begins to bid goodbye to 2025 with fireworks and icy plunges

REUTERS
Published :
Dec 31, 2025 22:12
Updated :
Dec 31, 2025 22:15

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Fireworks explode over Sydney Harbour Bridge to mark the New Year in Sydney, Australia, Jan 1, 2026. Photo : REUTERS/Hollie Adam

As Wednesday turned to Thursday, people around the world said goodbye to a sometimes challenging 2025 and expressed hopes for the new year to come.

Midnight arrived first on the islands closest to the International Date Line in the Pacific Ocean, including Kiritimati (Christmas Island), Tonga and New Zealand.

In Australia, Sydney began 2026 with a spectacular fireworks display, as per tradition. Some 40,000 pyrotechnic effects stretched 7 km (over 4 miles) across buildings and barges along its harbour and featured a waterfall effect from the Sydney Harbour Bridge.

This year, it was held under an enhanced police presence, weeks after gunmen killed 15 people at a Jewish event in the city.

Organizers held a minute's silence for the victims of the attack at 11pm local time, with the Harbour Bridge lit up in white and a menorah - a symbol of Judaism - projected onto its pylons.

"After a tragic end to the year for our city, we hope that New Year's Eve will provide an opportunity to come together and look with hope for a peaceful and happy 2026," Sydney's Lord Mayor Clover Moore said ahead of the event.

In Croatia, revels got off to an early start. Since 2000, the town of Fuzine has held its countdown at noon, a tradition that has since spread across the country. Crowds cheered, toasted each other with champagne and danced to music - all in the middle of the day. Some brave souls in Santa hats took a plunge into the icy waters of Lake Bajer.

Elsewhere, preparations got under way for the more traditional midnight toast. In subzero temperatures in New York, organizers began putting up security barriers and stages ahead of the crowds that will flock to Times Square for the annual ball drop.

In Seoul, thousands gathered at the Bosingak bell pavilion, where a bronze bell is struck 33 times at midnight - a tradition rooted in Buddhist cosmology, symbolizing the 33 heavens. The chimes are believed to dispel misfortune and welcome peace and prosperity for the year ahead.​
 
What economy are we leaving behind in 2025?

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VISUAL: ANWAR SOHEL

When the interim government formed following the July 2024 uprising, macroeconomic stability was weak, with several major economic indicators performing poorly. The accumulated costs of governance failures, corruption, and prolonged financial mismanagement had undermined the economy's potential. Since then, the free fall of the economy has been halted, and some negative trends have been reversed. However, the economy now experiences slower growth, elevated inflation, weakened investment sentiment, and rising vulnerabilities in the financial sector.

The macroeconomic environment in Bangladesh in the fiscal year (FY) 2025 (July 2024 - June 2025) and early FY2026 reflects a fragile and uneven recovery. Real growth of Gross Domestic Product (GDP) moderated sharply, registering only 3.97 percent in FY2025. While this represents a partial rebound from the disruptions caused by political unrest, it remains significantly below the country's historical average and far from the levels required to generate adequate employment for a rapidly growing labour force. Industrial production trends suggest that the recovery is underway. However, the pace is slow and insufficient to compensate for earlier losses or to drive a broad-based industrial resurgence.

Inflation remains one of the most persistent macroeconomic challenges. However, headline inflation eased to 8.29 percent in November 2025, largely driven by a deceleration in food prices rather than a comprehensive easing of price pressures across the economy. Although food inflation fell to 7.36 percent during this period offering some relief to households, it is still not at comfort levels as wage growth has failed to keep pace with rising living costs. The wage rate index was 8.04 in November 2025, slightly increased from 8.01 in October 2025. This implies stagnant real wages and eroding purchasing power for large segments of the population, rising vulnerability among low-income groups, and subdued consumer demand.

Weak private investment is another defining feature of the current macroeconomic landscape. Private sector credit growth fell to 6.23 percent in October 2025, reflecting subdued credit demand and tighter lending conditions in the banking system. This contraction signals investor uncertainty, driven by political instability, policy unpredictability, and longstanding governance failures in the financial sector. By contrast, public sector credit growth surged to 24.11 percent over the same period, indicating a growing reliance by the government on domestic borrowing to finance its operations. While such borrowing may be necessary in the short term to maintain fiscal stability, it risks crowding out private investment and exacerbating pressures on the banking system if not carefully managed.

In the banking sector, several banks have struggled to mobilise deposits amid declining public confidence, while non-performing loans (NPLs) have continued to rise. The NPL was 35.73 percent of total disbursed loans as of September 2025, mostly due to the recent scrutiny of several banks' health by the Bangladesh Bank. Earlier, several non-compliant commercial banks would hide the actual amount of NPLs. This alarming figure is not merely a cyclical phenomenon but the result of years of weak regulation, political interference, and repeated loan rescheduling that masked underlying insolvency. The persistence of such vulnerabilities threatens financial stability and undermines the transmission of monetary policy.

Fiscal performance has also weakened. With a tax-to-GDP ratio of only 6.8 percent in FY2025, Bangladesh continues to lag behind its regional peers, limiting the government's capacity to finance development spending without resorting to borrowing. At the same time, growth in public expenditure, particularly development expenditure, declined sharply throughout FY2025, raising concerns about the sustainability of infrastructure investment, human capital formation, and long-term growth potential. The combination of weak revenue mobilisation and constrained development expenditure poses a serious challenge to fiscal sustainability.

External sector indicators present a mixed picture. Export growth was 8.6 percent in FY2025. However, during July–November FY2026, export growth remained sluggish, registering only a marginal increase of 0.62 percent. In contrast, imports rebounded strongly, growing by 5.2 percent during July–November FY2026, driven primarily by higher imports of intermediate goods. While this may signal a gradual revival of industrial activity, it also underscores renewed pressures on the balance of payments.

Remittance inflows have provided a critical stabilising force. During July–November FY2026, remittances reached $13.04 billion, representing a year-on-year increase of over 17.1 percent and reflecting both increased overseas employment and policy measures to receive remittances through formal channels. While this marks a notable improvement from earlier lows, reserves remain vulnerable to external shocks and shifts in global financial conditions.

Other structural challenges compound economic pressure. Private investment fell to 22.48 per cent of GDP in FY2025, its lowest level in five years, raising concerns about future growth and job creation. The energy sector continues to impose heavy fiscal burdens due to high generation costs, unplanned capacity expansion, and excessive capacity payments. Most critically, Bangladesh is set to graduate from Least Developed Country (LDC) status in November 2026, which entails the gradual withdrawal of trade preferences, currently covering approximately 70 percent of global exports. Without adequate preparation, this transition could erode export competitiveness and expose structural weaknesses.

Looking ahead, the outlook for FY2026 indicates a modest recovery, although some risks remain. The Medium Term Macroeconomic Policy Statement of June 2025 by the Ministry of Finance projectd GDP growth to be 5.5 percent and inflation 6.5 percent in FY2026. On the other hand, the Bangladesh Bank forecasts real GDP growth to be 5.38 percent and average inflation to come down to 7.26 percent in FY2026.

Clearly, in the short term, stabilising the macroeconomic environment must be the top priority. Inflation control will require a careful balance between monetary tightening and supportive fiscal measures to protect vulnerable groups. Addressing NPLs and strengthening bank governance are critical to restoring confidence in the financial system and reviving private investment. Policy consistency, regulatory transparency, and political stability will be essential to improve the investment climate.

Over the medium to long term, deeper structural reforms are unavoidable. Strengthening the institutional independence and capacity of the central bank is crucial for effective monetary management. Industrial policy must focus on productivity, skills development, and technological upgrading to diversify exports beyond garments. Social safety nets need to be expanded and better targeted to protect those left behind by structural change. Skills development programmes must be aligned with market needs, particularly for youth and women. Broadening the tax base and reducing reliance on indirect taxation are essential for fiscal sustainability. Investment in climate resilience and disaster preparedness is increasingly urgent in a climate-vulnerable economy. Above all, transparent and accountable governance must be restored to rebuild trust and unlock long-term growth potential.

Dr Fahmida Khatun is executive director at the Centre for Policy Dialogue.​
 

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