[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Short-term economic reforms by Dec: Salehuddin

Short-term reforms will be brought about in the economic sector by December this year, said Finance Adviser Salehuddin Ahmed yesterday.

www.thedailystar.net

Short-term economic reforms by Dec: Salehuddin

Short-term reforms will be brought about in the economic sector by December this year, said Finance Adviser Salehuddin Ahmed yesterday.

Speaking to journalists after a meeting of the Cabinet Committee on Government Purchase, he said, "My target is to complete bringing about some reforms by December. We've already met a few immediate needs."

"There are some other reforms that are mid-term and long-term, like bank resolution, which will take a bit more time," he said.

"I went to Bangladesh Bank the day before yesterday—they've created a roadmap. Its implementation will come next," said Ahmed.

He said that the government will complete the separation of tax policy from tax implementation soon.

"We'll amend the ordinance slightly and get that done. The manpower issue will be settled—that won't be too difficult," he said.

In response to a question about the country's economic situation under the interim government, he said, "We've come a long way up from the edge of the cliff."

"To truly understand this, you need both vision and insight. It isn't right to just look at the surface and make superficial comments," said the finance adviser.

"Over the past year, the economy has regained a fair amount of stability. But definitely, there are still many challenges—like inflation, employment, and the issue of US tariffs," he said.

"The biggest challenge now is to restore business confidence and inject some momentum into trade and commerce, which has slowed down," he added.

Regarding the tariff issue, he said, "It has come down from 35 percent to 20 percent. Compared to other countries, that's not bad."

"Now we need to sign an agreement with the US—that hasn't happened yet. Once it happens, the details will be finalised," said Ahmed.​

 

[Saif]

NBR revenue targets and ground realities

The government must proceed with prudence and fiscal discipline, ensuring that even with reduced allocations, development priorities are met, and austerity is maintained across governance Despite repeated calls from businesses and think tanks to enhance the NBR's revenue mobilisation effor

thefinancialexpress.com.bd

NBR revenue targets and ground realities

FE
Published :
Aug 07, 2025 23:41
Updated :
Aug 07, 2025 23:41

The government must proceed with prudence and fiscal discipline, ensuring that even with reduced allocations, development priorities are met, and austerity is maintained across governance

Despite repeated calls from businesses and think tanks to enhance the NBR's revenue mobilisation efforts in a systemic manner, shortfalls in collection have become a recurring issue. A report by The Financial Express, citing official sources, reveals that the NBR must collect nearly 35 per cent more revenue in FY26 than in FY25 to meet its ambitious target. The income tax wing alone is tasked with a 43 per cent increase, reflecting the pressure across all three revenue wings. The targets set for FY26 are: income tax-- 42.63 per cent higher than FY25; value added tax (VAT)-- 30.49 per cent higher, and customs duty-29 per cent higher. To meet the total revenue goal of Tk 4.99 trillion, the NBR needs to increase collections by approximately 35 per cent, compared to Tk 3.70 trillion collected in FY25. Many observers argue that the persistent revenue shortfall is partly due to unrealistically high targets, which are often set without adequately assessing the prevailing economic conditions. Businesses continue to struggle with rising production costs, reduced profitability, and uncertainty, all of which constrain their ability to pay higher taxes. Economists have voiced concerns that such inflated targets may lead to aggressive tax collection measures, placing undue burden on taxpayers. They also point out that the current economic environment does not support such high expectations for tax and duty revenues.

In FY25, overall revenue growth was a mere 2.23 per cent-one of the lowest in NBR's history-amid months of political instability. In the final month (June), collections fell 37.6 per cent short of the monthly target, and registered a 19 per cent year-on-year decline. According to NBR officials, this shortfall stemmed from internal disruptions, poor execution of the Annual Development Programme (ADP), weak private investment, and a sluggish business environment, following the July uprising last year. Furthermore, VAT collection saw an abrupt decline, causing revenue growth to fall below 9 per cent year-on-year in May, the lowest in 12 months. Despite these setbacks, the overall growth in revenue collection stood at about 15 per cent, which is still far below what is required to meet the FY26 target. On the customs side, imports rose by 1.4 per cent over the past 11 months compared to the same period last year, while customs duty realisation grew by 13 per cent.

A critical question arises: will the revenue shortfall severely impact development spending? In response, Finance Adviser Dr. Salehuddin Ahmed noted that the FY26 budget has been framed conservatively, with reduced expenditure plans to account for potential shortfalls. According to Ministry of Finance data, public spending may decline to 12.7 per cent of GDP, and the development budget has been set at the lowest level in four years.

Given the circumstances, the government must proceed with prudence and fiscal discipline, ensuring that even with reduced allocations, development priorities are met, and austerity is maintained across governance.​

 

[Saif]

Inflation up again after brief relief on farm bounty

Inflation takes an upturn again, after a brief relief on bounteous agricultural harvests, with July rate climbing to 8.55 per cent by official count released Thursday. Bangladesh Bureau of Statistics (BBS) data show the point-to-point inflation rate in July 0.07- percentage-point higher over the p

thefinancialexpress.com.bd

Inflation up again after brief relief on farm bounty
July rate up at 8.55pc, despite govt bid to tame market

FE REPORT
Published :
Aug 08, 2025 00:46
Updated :
Aug 08, 2025 00:46

Inflation takes an upturn again, after a brief relief on bounteous agricultural harvests, with July rate climbing to 8.55 per cent by official count released Thursday.

Bangladesh Bureau of Statistics (BBS) data show the point-to-point inflation rate in July 0.07- percentage-point higher over the previous month of June.

And this upturn breaks a breather lasting previous three consecutive months, as, reports show, kitchen market takes in some heat from price rises of numerous farm produce.

In June, the inflation rate was recorded at 8.48 per cent, as per the BBS data.

In the corresponding period in July 2024, the BBS calculated the inflation at 11.89 per cent -- the highest in recent times.

The current interim government targets to tame the average inflation within 6.5 per cent during this fiscal year (2025-26).

According to the national statistical bureau, food inflation increased to 7.56 per cent last month from 7.39 per cent in June.

Preceding the latest uptrend, the month-on-month inflation had steadily decreased from 9.35 per cent in March to 9.17 per cent in April, to 9.05 per cent in May, and to 8.48 per cent in June, the official statistics show.

Townsmen happen to bear the brunt of higher inflationary pressure compared to villagers as the point-to-point inflation in urban areas was recorded 8.95 per cent, 0.40-percentage-point higher than the average rate in July.

On the other hand, the inflation in the rural areas was recorded at 8.55 per cent, same as the previous month.

According to BBS findings, the food-inflation rate in urban areas last month was 8.04 per cent while it was 7.99 per cent in the previous month.

Non-food inflation in towns was recorded at 9.55 per cent in July in a nominal rise from 9.53 per cent in the previous month of June.

For the rural Bangladesh, the food inflation was 7.36 per cent and the non-food inflation 9.73 per cent last month. In the previous month, the two rates were recorded at 7.14 per cent and 9.72 per cent respectively.

The 12-month average inflation in Bangladesh was still high at 9.77 per cent between August 2024 and July 2025, according to BBS data.

In the corresponding period between August 2023 and July 2024, the inflation rate was 9.90 per cent.

Meanwhile, BBS also unveiled the Wage Rate Index (WRI) for the month of July, showing a slight rise.

According to the statistics, the WRI last month was 8.19 per cent, 0.01-percentage-point higher than in the previous month of June.​

 

[Saif]

Digital platform for transparent fiscal management of SoEs

There is no gainsaying the importance of keeping a government running effectively within its budget. So, the entire process of procuring its funds, allocating those, monitoring their use and, finally producing financial report are the key areas of fiscal management. Since human bias and error

thefinancialexpress.com.bd

Digital platform for transparent fiscal management of SoEs

FE
Published :
Aug 08, 2025 22:44
Updated :
Aug 08, 2025 22:44

There is no gainsaying the importance of keeping a government running effectively within its budget. So, the entire process of procuring its funds, allocating those, monitoring their use and, finally producing financial report are the key areas of fiscal management. Since human bias and errors can prejudice the outcome of this exercise, the need for digitalizing the procedure cannot be overstated. And that is more so when it comes to ensuring the transparency and accountability of the process. According to the global lender, the International Monetary Fund (IMF), comprehensive, transparent, reliable and timely public reporting on the state of public finances is critical for effective fiscal management and accountability. Because, it helps ensure that the government has an accurate picture of its finances when making economic decisions including costs and benefits of any policy changes and potential risks to public finances. More importantly, it provides the legislature, markets and citizens with the information they need to hold the government accountable.

In this connection, the body under the Finance Ministry, Finance Division, in short, FD, which is responsible for controlling government expenditure and national budget has recently showcased at a workshop in the city an online digital platform with the acronym, SABRE+ system, developed by it (FD) to, what it said, enhance transparency and accountability in the management of the State-Owned Enterprises (SoEs) and autonomous bodies. Standing for 'State-owned Enterprises and Autonomous Bodies Budget, Reporting, and Evaluation System', SABRE+ system, is designed to streamline the process of budget preparation, financial reporting and performance evaluation for the SoEs and autonomous bodies. To distinguish the special features of 'SABRE+' vis-à-vis other types of online digital platforms, the Finance Adviser of the interim government, Dr Salehuddin Ahmed, who spoke at the said workshop reportedly pointed out that the system in question was more than just a digital tool as it represents a pivotal shift towards data-driven, transparent and accountable governance across the SoEs and autonomous bodies.

True, reliable data and internal control are the sine qua non of good governance. Hopefully, the SABRE+ system will be able to meet the objective by enabling the government to carry out timely evaluation of its fiscal-related activities. It is believed, once implemented efficiently, the new online platform will help avoid discrepancies in budget planning so its financial aspect could be managed well. Definitely, it is a step forward towards transitioning to a framework that is based on performance and compliance. While appreciating the good work that has gone into developing the online system, it is also important to keep in mind that any machine, however smart, requires humans to run it. In that case, unquestionable integrity of the man behind the machine will always remain the first condition to meet before it can deliver without bias and prejudice.

So, one would like to believe that the development of the new, online digital tool for budget reporting and evaluation would be able to prove its worth through its application in the government sectors for which it is designed. For, according to reports, at the moment, total liabilities with the 101 SoEs and autonomous bodies stand at over Tk.6.39 trillion with 26 per cent of the amount tied to subsidiary loan agreements. There is no question of keeping track of as well as correctly assessing this huge government liability with the help of the digital tool designed for the purpose. As expected, the next step of the government would be to take appropriate measures to rid the public exchequer of this enormous drain on the government exchequer.​

 

[Saif]

Further cut in export cash incentive before LDC graduation unlikely

Squeezing cash incentives anymore is unlikely before Bangladesh's graduation from the world poor-country club as the government prioritises propping up trade and industry to navigate global trade uncertainties, officials say. To support trade against adverse affect of tariff wars and "hostile atti

thefinancialexpress.com.bd

RETHINK ON SQUEEZE IN TRADE-INDUSTRY PROMOTING PERKS
Further cut in export cash incentive before LDC graduation unlikely
Global trade dilemmas, tariff wars, neighbours' hostility induce govt stance

SYFUL ISLAM and JASIM UDDIN
Published :
Aug 09, 2025 00:28
Updated :
Aug 09, 2025 01:11

Squeezing cash incentives anymore is unlikely before Bangladesh's graduation from the world poor-country club as the government prioritises propping up trade and industry to navigate global trade uncertainties, officials say.

To support trade against adverse affect of tariff wars and "hostile attitude" of the neighbouring partners, they add, the current interim government for the first six months of the current fiscal year kept cash incentives same as the amount revised in January 2024.

Finance Secretary Dr Md Khairuzzaman Mozumder at a recent meeting said the government had taken steps to phase out cash incentives in four stages so that businesses do not have to bear the brunt at once when graduation is completed in November 2026.

However, he said, considering the current global trade uncertainties, the government is reviewing whether to defer the reduction in cash incentives until graduation from the least-developed countries (LDCs) group.

Rather, according to Mr Mozumder, the government is also exploring alternative production-linked incentives for promising sectors like agriculture, pharmaceuticals, leather, and jute and jute goods, in place of cash incentives.

Contacted over the rethink, a senior official who attended the meeting told the FE there was no possibility that the cash incentives would be lessened anymore before the county's status change onto a higher rung through graduation.

"We are about to graduate from the LDC group. But the present global scenario is not in favour of trade. So, the government is unlikely to lessen cash incentives only few months remaining in hand," he said.

After crossing the crossroads in November, the cash incentives will go automatically in line with the provision of the World Trade Organisation for developing countries, for which providing cash incentives or export subsidy is prohibited.

In January 2024 the government began restructuring export subsidies through lowering their rates. The rates of cash incentives following the trimming for 43 categories of products have gone down to stand between 1.0 per cent and 15 per cent.

In the second phase of lowering cash incentives the rate further went down to fall between minimum 0.3 per cent and maximum 10 per cent, over which the businesses reacted sharply, and demanded retention of the rates as before January 2024.

President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Mahmud Hasan Khan on June 25 met finance secretary Mr Mozumder and urged him to reinstate full cash incentives to help the sector remain competitive amid growing uncertainty.

Talking to the Financial Express on Friday, Mr Khan welcomed the government move not to lessen cash incentives anymore in view of the industry's condition and the global economic situation.

"We urge the government to reinstate the special incentive at 1.0 per cent for apparel industry which earlier was reduced to 0.5 per cent and now stands at 0.3 per cent," he said.

Abdullah Hil Nakib, Deputy Managing Director, Team Group, says the government should focus on facilitating exporters, including those in the apparel sector, instead of reducing cash incentives, as Bangladeshi exporters lag far behind competing industries in other countries in terms of supports.

"The government can, at this stage, prioritise reducing bank interest rates to encourage investment and create new employment opportunities," he told the FE.

He also calls for government-to-government agreements with certain countries to secure zero-tariff access for exports.

Nakib further urges the government to find ways of continuing incentives after the country's graduation from LDC status.​

 

[Saif]

Inflation comes back to bite

Just when it seemed the worst of the inflationary storm might be passing, official data confirm that price pressures are rising again. After three consecutive months of moderate decline aided by strong agricultural output, inflation in Bangladesh has reversed course. The Bangladesh Bureau of Statis

thefinancialexpress.com.bd

Inflation comes back to bite

FE
Published :
Aug 09, 2025 23:01
Updated :
Aug 09, 2025 23:01

Just when it seemed the worst of the inflationary storm might be passing, official data confirm that price pressures are rising again. After three consecutive months of moderate decline aided by strong agricultural output, inflation in Bangladesh has reversed course. The Bangladesh Bureau of Statistics reports that the point-to-point inflation rate in July increased to 8.55 per cent, slightly higher than June's 8.48 per cent. This renewed increase is occurring despite the continuation of a contractionary monetary policy aimed at curbing inflation. In an economy where a large informal sector limits the reach of formal policy tools, the impact of such monetary measures may fall short and the recent uptick in inflation is a telling sign of that limitation. The government had set a target of bringing average inflation down to 6.5 percent within this financial year, but with prices rebounding earlier than expected, meeting that goal now looks increasingly doubtful.

Particularly troubling is the rise in food inflation, which increased to 7.56 per cent in July from 7.39 per cent in June, putting added pressure on household budgets and kitchen markets across the country. Urban residents are struggling more than their rural counterparts, with overall inflation in cities reaching 8.95 per cent compared to 8.55 per cent rural areas. Non-food inflation remained also stubbornly high, standing at 9.55 percent in urban areas and slightly higher at 9.73 percent in rural regions. The previous three-month decline in inflation was largely attributed to abundant agricultural harvests. The fact that food prices are rising despite these harvests suggests that the issue lies more with supply distribution than with supply availability. The persistently high non-food inflation also points to the supply-side constraints and production inefficiencies as significant factors for the current situation.

For average Bangladeshis, particularly low-and-middle-income families, higher prices are bad news because they reduce real income and make people poorer. Although the Wage Rate Index (WRI) increased slightly to 8.19 per cent, wages still fail to keep pace with inflation. Without effective intervention, this trend could exacerbate inequality and fuel social discontent. Conventional inflation-control measures like tightening money supply and raising interest rates are proving less effective because when the root causes are supply-side barriers, monetary policy alone is insufficient. These barriers such as disruptions in food distribution, soaring import costs and market inefficiencies require broader interventions. The upcoming national elections present additional inflationary risks, as anticipated increases in campaign spending are likely to expand money supply, potentially pushing inflation even higher.

To rein in inflation, the government must prioritise stabilising food prices given their outsized role in this crisis. This requires strengthening agricultural supply chains through targeted investments in storage facilities, transportation infrastructure and improved market linkages to ensure consistent flow of goods across regions. However, even when supplies are sufficient, market intermediaries can exploit consumers by charging excessive margins in the absence of proper oversight. This is why stricter enforcement against market manipulation and hoarding, along with digital price tracking, is crucial to curb unfair practices. There is also a pressing need for a strategic reserve system for essential imports such as food and fuel that can be used as buffer against sudden price shocks. The recent rise in inflation is a clear warning that complacency is not an option. Policymakers must respond with a clear and coordinated plan. Failure to do so will not only allow prices to rise further and undermine inflation control efforts, but also intensify economic hardship for millions.​

 

[Saif]

Revenue reform, tax digitisation, trade-clearance systems start paying

Three major steps on digitisation of the tax administration in last one year of the interim government has already started paying off through faster trade documentation and leak-plugged tax mobilisation, officials claim. The breakthroughs are taking place by way of restoring taxpayer confidence in

thefinancialexpress.com.bd

Revenue reform, tax digitisation, trade-clearance systems start paying

Doulot Akter Mala
Published :
Aug 09, 2025 23:49
Updated :
Aug 09, 2025 23:49

Three major steps on digitisation of the tax administration in last one year of the interim government has already started paying off through faster trade documentation and leak-plugged tax mobilisation, officials claim.

The breakthroughs are taking place by way of restoring taxpayer confidence in virtual operations instead of the loopholes-ridden manual processing moving from table to table in offices.

The digitising of revenue system has been minimizing the hassles in tax payment and expediting the release of goods from customs points.

The initiatives, if sustained, would plug the scope of underhand dealings between taxmen and taxpayers and cut time of cargo release at customs points.

The digitising includes mandatory online tax-return submission by individual taxpayers, suspending manual selection of taxpayers' files for audit, introducing mandatory receipt of import certificate, licences and permissions under Bangladesh Single Window (BSW) gateway.

Already, online tax-return submission marked nearly three times increase last year, ending June 30, 2025, as going online was mandatory for some professionals, NBR data showed.

From August 4, all individual taxpayers are required to submit tax returns online.

After the formal launch of the BSW, traders have received some 431,169 certificates, licences and permission from the online portal to get their products released from ports.

Suspension of manual selection of tax files for audit is another breakthrough as now only selection of tax files is conducted digitally. "Taxpayers have long faced harassment on audit-selection process as it was a tool of money making by some tax officials, staffers and tax practitioners," says many a sufferer.

The National Board of Revenue (NBR) data show 15,494 tax files have been selected for audit following the concept of "tax justice" where only 0.5 per cent of tax returns of each circle have been selected for audit. To improve the audit selection, Risk-based Audit Selection Criteria would be automated soon.

Time and cost of tax payment would gradually come down, encouraging tax payment if the move continued under the next political regime, set to come through the election the current interim government moves to hold next February.

However, officials at field offices felt the need of restoring confidence among the tax officials who are still panicked, shocked and quite in low morale over the government's punitive action against reform protesters.

An unrest in revenue administration sparked in May and June 2025 against an ordinance issued to bifurcate the NBR into revenue administration and implementation.

"Man behind the machine cannot be ignored as system has to be operated and implemented by the officials," says an expert in this field.

Though NBR's revenue mobiisation has marked one of the lowest growth, 2.56 per cent, excepting the year of Covid-19, in the last one decade, both taxmen and businesses believe the situation would improve significantly in the current financial year if the interim government can bring back working spirit of the taxmen.

"The year 2024 cannot be compared to other normal financial years as it has gone through several challenges with its last quarter hit directly in the tax collection," says former chief economist at the World Bank Bangladesh office Dr Zahid Hussain.

"There is no alternative to raising the tax to-GDP-ratio but reform in tax department has not marked any significant progress yet," he told The Financial Express.

On digitisation, he said the efforts had not shown any result earlier as the government made partial digitisation where taxpayers have to visit tax offices at some stage of the process of tax payment and return submission.

The BSRM Group of Companies Chairman and Chief Executive Officer, Alihussain Akberali, feels the process of online tax return should be upgraded as it takes quite a long time to fill out the forms with required inputs.

"Income-tax-return system of Singapore could be an example of digitisation where access of all records of an assessee, including bank-account information, property, CDBL, is available for the taxmen. A software should be there to verify what each assessee has furnished in the tax files and highlight gross anomalies, if any, for their investigation," he told the FE.

Talking to the FE on Saturday, NBR chairman Abdur Rahman Khan said the digitisation would pay off gradually as the NBR is now working to ensure integration and interoperability.

On allegations of partial automation, the NBR chief said,"The government's other departments would also require to digitise at the same pace so that taxmen can get all required information provided in the tax returns."

A bunch of further digitisation steps, including bonded-warehouse facility, and simplification of tax clearance for foreign nationals are underway to ease tax payment and compliance process, he informed.​

 

[Saif]

Structural ills, slow investment and inflation stymie economic recovery

Bangladesh's economy has avoided a catastrophic collapse over the past year following the interim government's decisive actions, but entrenched structural weaknesses, slow private investment, and persistent inflation impede long-term recovery. As economists, experts and a top politician made such

thefinancialexpress.com.bd

ECONOMY SAVED FROM COLLAPSE BUT CHALLENGES PERSIST: CPD MEET
Structural ills, slow investment and inflation stymie economic recovery

FE REPORT
Published :
Aug 11, 2025 01:08
Updated :
Aug 11, 2025 01:08

Bangladesh's economy has avoided a catastrophic collapse over the past year following the interim government's decisive actions, but entrenched structural weaknesses, slow private investment, and persistent inflation impede long-term recovery.

As economists, experts and a top politician made such observations at a high-profile policy dialogue Sunday in Dhaka, the central bank's governor listed improvements in some of the country's macroeconomic parameters and rolled out a slew of reforms coming in the banking sector for an overhaul.

The Centre for Policy Dialogue (CPD) organised the discussion, titled '365 Days of the Interim Government', at Lakeshore Hotel. Labour and Shipping Adviser Brig-General (retd) M Sakhawat Hossain attended the meet as chief guest, while CPD Distinguished Fellow Professor Mustafizur Rahman presided.

Bangladesh Bank Governor Dr Ahsan H Mansur painted a stark picture of the economy that the interim administration inherited. "The banking sector was right at the edge of the cliff when we took office," he said, adding that stabilising the macroeconomic condition and initiating financial-sector reforms became immediate priorities.

While acknowledging that "reforms can't be done in a year", Dr Mansur said progress had been made across multiple areas. The central bank quickly engaged with international financial institutions to preserve lines of credit, pledging to meet all foreign-payment obligations.

"Our situation didn't turn like Sri Lanka or Pakistan's. Remittances and exports provided tremendous support in debt repayment," he told the cutting-edge stocktaking session.

The governor notes that since 14 August 2024, the central bank has not sold a single dollar from reserves -- instead, purchasing at Tk122 despite exchange-rate pressures.

Inflation has fallen below 10 per cent, with expectations that the rate could drop below 5.0 per cent in the future, and the balance of payments (BoP) has returned to surplus, he told the meet about improving macroeconomic parameters.

On the legal front involving banking and finance, Dr Mansur announced amendments to be made to the Bank Companies Act, Money Laundering Act, Deposit Insurance Act, and Money Loan Court Act. The Bangladesh Bank Order is also being updated to strengthen autonomy and accountability.

The central bank is preparing to amend the Bangladesh Bank Resolution Ordinance allowing for acquisition of banks reeling from liquidity crises due to irregularities, with "no more leniency" for misconduct.

Other overhaul initiatives include forming three taskforces for (a) reform in the banking sector and central bank operations, and laundered money recovery (b) establishing a single body for "360-degree monitoring" of all banks (c) promoting QR code payments and credit-card usage (d) expanding nano-loans and student accounts (e) restructuring the revenue department (f) lowering smartphone prices to boost digital-banking coverage.

Reflecting on a turbulent year, Adviser M Sakhawat Hossain admitted the interim government was "bound to disappoint". Speaking as chief guest, he said: "We never said roses would bloom in every home."

Sakhawat, who has served in four ministries in a year under the post-uprising government, recalls the July Uprising as "unprecedented" -- a leaderless revolt where schoolchildren and youths died on the streets. In early August, as chaos gripped the country, he was handed the Home Ministry. "The police were demoralised and refused to work. I had to issue an ultimatum," he said, stressing that political interference must end for reforms to last.

Later, at the Labour Ministry, he faced the Beximco crisis, with 38,000 workers losing jobs. "I could do little, only form a committee," he admitted.

On banking scandals, he revealed one firm took Tk 480 billion from 16 banks and 7 financial institutions, with Tk 240 billion from Janata Bank alone -- without collateral.

"Maybe, we've failed in many areas, but not everywhere," he concludes. "We can leave a framework. Whether it's implemented -- that, I cannot guarantee."

CPD's traffic-light scorecard on government performances gives mixed readings. Presenting CPD's independent review of the government's first year, Executive Director Dr Fahmida Khatun said a "major economic disaster" was averted, with foreign-exchange reserves stabilised, remittances and exports increasing, and the trade balance improving.

However, she warns that these gains did not translate into qualitative improvements in ordinary people's lives. "Inflation may have eased, but many persistent challenges remain."

She highlights low revenue collection, weak institutional capacity, and constrained private-credit flow as serious problems.

The CPD's traffic-light scorecard has assessed 38 economic and social indicators. Nine were rated "green" (positive progress), 18 "yellow" (warning signs), and 11 "red" (areas of grave concern). While inflation control entered the green zone, health, education, revenue mobilisation, and governance were marked red.

Dr Khatun points out that health and education suffer from chronic underinvestment, poor infrastructure, staffing shortages, and rural-urban disparities, warning that "without decisive reform, the next generation will bear the cost".

She also flagged the fragility of the banking sector, citing rising non-performing loans (NPLs) and political influence. While the dissolution and reconstitution of 14 bank boards, adoption of international loan- classification standards, and creation of Tk230 billion in special credit lines were positive, the true scale of bad loans remains unclear.

The think-tank welcomes SME lending requirements, the youth fund, and enhanced migrant-worker financing but deplores a lack of progress in export diversification, post-LDC-graduation tariff reforms, labour-policy updates, and energy security.

It notes that while arrears to Adani have been cleared and capacity payments abolished, uninterrupted and affordable power supply remains a challenge.

Distinguished Fellow of the CDP Professor Mustafizur Rahman said macroeconomic stability had been largely restored from a situation of high inflation, rising unemployment, currency devaluation, declining remittances, and low investment a year ago. However, he strikes a note of caution: "The major test will be to translate this stability into investment and job creation."

He notes that some government targets have been met, others fallen short, and several initiatives were only beginning. "The future political government will have to carry these forward."

Standing Committee member of BNP Amir Khosru Mahmud Chowdhury told the review meet that sustainable reform requires changing the country's political culture. "We must move away from confrontational politics. Democracy means tolerance and respect for others' views."

He praised the National Consensus Commission initiative and calls for deregulation, greater private- sector involvement in economic management, and reduced direct contact between service providers and recipients to curb corruption.

He described Bangladesh's low ranking in foreign direct investment as a barrier to growth, urging a shift toward economic democratisation and faster restoration of democratic governance.

Dr M Tamim, Vice-chancellor of Independent University Bangladesh (IUB), Mahmud Hasan Khan (Babu), President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Syed Sultan Uddin Ahmed, Chair, Labour Reform Commission, Mohammed Nurul Amin, Chairman, Global Islami Bank PLC, and Showkat Aziz Russell, President, Bangladesh Textile Mills Association (BTMA), among others, spoke at the event.