An interim year of progress, but investment and jobs must follow
As the interim government of Bangladesh, led by Nobel laureate Professor Muhammad Yunus, completes its first year in office, the nation stands at a pivotal juncture.
A raft of economic reforms has delivered some commendable successes — but the most crucial elements, investment growth and job creation, remain elusive.
The government has rightly earned praise for restoring transparency and discipline in the banking and financial sectors.
Legal amendments, restructuring of bank boards, and efforts to recover default loans and laundered assets are all steps in the right direction.
The freezing of laundered assets abroad marks a notable success in the fight against financial crime.
Simultaneously, foreign currency reserves have been bolstered and external debt obligations met with stability — a stark contrast to the turbulent fiscal landscape inherited a year ago.
Inflation has been significantly brought down, food prices have moderated, and remittance inflows have reached a record USD 30.33 billion.
The export sector has posted a healthy 9 per cent growth, and for the first time in over a year, the taka has strengthened against the US dollar.
These are no small achievements for an interim regime operating under intense political and economic scrutiny.
However, these gains are yet to translate into meaningful progress in investment and employment — two core pillars of economic sustainability.
As Dr Mostafizur Rahman of the Centre for Policy Dialogue notes, there is still no clear roadmap to spur large-scale investments or absorb the growing number of unemployed youth.
The national budget, instead of signalling a shift, has followed a traditional approach, offering little in terms of innovation or stimulus.
Furthermore, long-needed reform of the revenue sector remains unfinished.
Without expanding the direct tax base and increasing revenue collection, rising debt levels could erode the very stability the government has worked hard to achieve.
The partial progress in reforming the National Board of Revenue is not enough to avert this looming risk.
Positive developments in migration, including expanded visa agreements and job opportunities abroad, offer some relief. Yet, domestic employment remains the larger, unmet challenge.
The government must now focus on catalysing private and foreign investment to generate employment, restore public confidence, and consolidate its economic gains.
The interim government deserves credit for stabilising the economy — but sustaining this momentum will require bold, targeted action to address the investment and employment gaps that continue to weigh on Bangladesh’s long-term growth.