Special
Sundarbans Day to be observed Friday, still awaits national recognition
Despite lacking official recognition, ‘Sundarbans Day’ will be observed on Friday in the coastal districts, including Bagerhat and Khulna, with renewed calls for the government to acknowledge it nationally.
The Sundarbans, the world's largest mangrove forest, is home to diverse animal species and unique flora. Since 2002, coastal communities adjacent to the Sundarbans have marked this day, with divisional-level events held in Khulna.
Besides, youth forums in 17 upazilas across five Sundarbans-adjacent districts will observe the day.
Even after 23 years, authorities have yet to respond to appeals for official recognition.
Organisers believe that a nationally recognised ‘Sundarbans Day’ would enhance the forest’s status and promote its significance both domestically and internationally.
Top 3 Books in English on the Bangladesh Sundarbans
Such recognition, they argue, would also contribute to conservation efforts.
A Natural Wonder at Risk
The Sundarbans, a UNESCO World Heritage Site, lies in southwestern Bangladesh along the Bay of Bengal and has evolved into a natural marvel.
In 1878, it was declared a reserved forest, spanning 6,017 square kilometres, including 4,143 square kilometres of land and 1,873 square kilometres of water bodies.
More than half of the Sundarbans is now a protected area.
The ecosystem is globally recognised for its rich biodiversity, serving as a habitat for the Royal Bengal Tiger and acting as a natural barrier against cyclones and tidal surges.
The Sundarbans also offers the livelihoods of hundreds of thousands of people and attracts both domestic and foreign tourists with its mesmerising landscapes.
Conservation projects paying fruit as Sundarbans witness increase in tiger population
Experts warn that climate change poses a grave threat to the mangrove forest, with cyclones and tidal surges repeatedly causing damage. Yet, nature's resilience has allowed it to recover time and again.
Calls for National Recognition
In 1997, UNESCO designated three wildlife sanctuaries in the Sundarbans as World Heritage Sites.
The forest's name is believed to derive from the abundance of 'Sundari' trees, though some argue it originates from 'Samundarbana' (forest by the sea), given its proximity to the Bay of Bengal.
The first comprehensive survey of the Sundarbans was conducted between 1769 and 1773.
229 minutes ago
Bangladesh's export diversification struggle: Key challenges and barriers
Although Bangladesh’s export volume has grown by over 5 per cent in the last 35 years since 1989-90, the diversification of export products remains elusive, with exports still concentrated in just 8 to 9 major items.
Why has Bangladesh been unable to achieve significant export diversification despite sustained efforts?
According to Abu Mukhles Alamgir Hossain, Director (Policy and Planning) of the Export Promotion Bureau (EPB), several other promising sectors, such as leather and leather goods, jute and jute products, agricultural and processed products, handicrafts, pharmaceuticals, ICT and ICT-enabled services, and light engineering products, do not receive the same level of policy support and incentives as the readymade garments (RMG) sector.
He emphasised that sector-specific policy papers are essential to assess the advantages and disadvantages of diversification while also analysing the strategies of competing nations.
Barriers to Export Diversification
A range of challenges hinder Bangladesh’s export diversification efforts.
These include low technological advancement, inconsistent trade policies, environmental and compliance issues, skill shortages, limited innovation and research & development (R&D), inadequate logistics, intense global competition, and restricted access to finance for small and medium-sized enterprises (SMEs).
Alamgir Hossain said that SMEs in Bangladesh struggle due to limited access to affordable credit. High interest rates and collateral requirements create significant barriers to business expansion.
“Although SMEs are regarded as the lifeblood of the economy, Bangladesh must prioritise their development if serious about export diversification,” he said.
Plastic products can boost export diversification: Commerce Adviser
He added that export diversification cannot happen overnight. There is no shortcut to achieving it. Long-term strategies, sector-specific policies, business-friendly customs procedures, and efficient logistics are crucial for ensuring a diversified export sector.
Current Export Scenario
According to the EPB, Bangladesh exported goods worth Tk 2.94 lakh crore (US$28 billion) in the seven months from July to January, of which Tk 2.46 lakh crore (US$23.5 billion) came from garments alone. During this period in the current 2024-25 fiscal year, total export earnings grew by 11.68 per cent.
The ready-made garment sector grew by 12 per cent, with knitwear expanding by 12 per cent and woven garments by 11.97 per cent compared to the same period last year.
Bangladesh’s export earnings are still overwhelmingly dependent on the clothing sector. The EPB reports that in the 2023-24 fiscal year, knitwear accounted for 44.6 per cent of exports, woven garments 37.2 per cent, home textiles 3.3 per cent, footwear 2.3 per cent, jute products 1.9 per cent, and fish 1 per cent.
Despite expert recommendations and government initiatives to promote export diversification, non-RMG sectors have shown little improvement, continuing their weak performance year after year.
Bangladesh’s export products remain concentrated in just eight categories: knitwear, woven garments, agricultural products, leather and leather goods, jute and jute products, home textiles, frozen and live fish and engineering products.
Challenges in Expanding Export Markets
Bangladesh’s primary export destinations are the European Union, the United States, and the United Kingdom. While these markets are large, they primarily import clothing items from Bangladesh due to the country's expertise in the sector and its competitive pricing, industry insiders say.
Reduced regulatory burdens, documentation processes to foster export diversification: Discussants
Dr Mohammad Abdur Razzaque, Chairman of the Research and Policy Integration for Development (RAPID) think tank, stressed that the time for serious efforts towards export diversification is now.
“Although achieving major export diversification is a long-term process and Bangladesh has been trying for years, there is no alternative but to achieve diversification to sustain the export sector,” he stated.
Dr Razzaque, who has also served as a trade expert in the UK and EU, warned that global challenges could lead to declining demand for clothing products in the USA, UK, and EU, as competing countries ramp up their export capacities.
Furthermore, he pointed out that US sanctions on China may indirectly affect Bangladesh’s garment sector, given that Bangladesh imports a significant portion of raw materials for garments from China. The evolving global trade landscape poses additional risks.
Key Issues Preventing Export Diversification
Responding to why Bangladesh has failed to diversify its exports, Dr Razzaque said, “We have not taken the issue of product diversification seriously enough. Compliance is another major concern.”
He noted that the potential of the leather sector remains largely untapped due to compliance issues. “Bangladesh had ample time to address compliance challenges in the leather industry, but mismanagement and corruption have kept the sector lagging behind,” he added.
Dr Razzaque emphasised the need for improving workforce skills to enhance competitiveness in the global market.
He argued that producing diversified and high-end products would provide Bangladesh with a crucial advantage in exports.
While Bangladesh’s export sector has seen remarkable growth, its overwhelming reliance on the RMG industry makes it vulnerable to shifts in global demand and competition.
Experts suggest BD’s export diversification to tackle upcoming challenges
Addressing barriers such as inadequate policy support for non-RMG sectors, compliance shortcomings, skill gaps, and financial constraints on SMEs is essential for meaningful diversification. Without significant reforms and targeted investment in emerging export industries, Bangladesh risks stagnation in its export growth and long-term economic vulnerability.
3 hours ago
Severe shortages cripple healthcare at Bagerhat’s 250-bed hospital
Healthcare services at the Bagerhat 250-bed hospital have been severely hampered for years due to a shortage of doctors, inadequate funding, and an ongoing crisis of hospital beds. Despite being the district’s main healthcare facility, the hospital continues to operate with resources meant for a 100-bed capacity, locals say.
According to hospital records, 33 out of 58 physician posts remain vacant, creating a critical gap in patient care. The anesthesiology department, essential for surgeries and emergency interventions, has only one junior consultant. Due to this shortage, treatments for cardiac, ophthalmological, and ENT (ear, nose, and throat) patients have been suspended.
Other vital services remain non-functional. The Intensive Care Unit (ICU) has been shut down after running for just one year, and kidney dialysis services have yet to begin, forcing critically ill patients to seek treatment elsewhere.
With 400 patients admitted daily—far exceeding the hospital’s 250-bed capacity—many are forced to sleep on the floor, even in winter. During a visit to the hospital, patients were found lying on the floors of corridors, stairways, and near nurses' counters due to a lack of space.
Md Zahid, a patient from Muginj, has been receiving treatment on the floor for four days. "I haven't received any food from the hospital," he said. Other patients, Eskendar Ali Sardar and Zihad Talukdar, shared similar experiences.
Patients struggle at Pangu Hospital with 'No Empty Bed' persistent claim
Nurses say they are overwhelmed by the heavy workload. Each nurse attends to 40-45 patients daily, making it nearly impossible to provide quality care.
“We receive food allocations for only 40 patients, but we often have 75 to 80 admitted, leaving many without meals,” said Nilufa Khanom, a nurse in the surgery department. "This creates conflicts between staff and patient families."
Established in 1970 as a 50-bed facility, the hospital was upgraded to 100 beds in 1992 and later to 250 beds in January 2022. However, its staffing and funding have remained at the 100-bed level, failing to match the rising patient demand.
Currently, out of 10 senior consultant posts, only two are filled, and only four consultants are available out of 15 posts. The situation is even worse in the anesthesiology department, where just one doctor is available out of six.
Meanwhile, the outpatient department sees 1,200 to 1,500 patients daily, while the emergency unit handles 250 cases—putting immense pressure on the hospital’s limited staff.
Dr. Taposh Kumar Sarkar, the hospital’s resident medical officer, admitted that the facility is struggling to provide proper care to 17 lakh people in the district.
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"Despite increasing the hospital’s capacity, manpower and funding have not been adjusted accordingly," he said. "Under such conditions, ensuring patient satisfaction is nearly impossible."
He urged the government and local stakeholders to intervene immediately, warning that without urgent measures, the crisis will only worsen.
5 hours ago
Entrepreneurs face uncertainty over higher interest rates, energy supply disruptions
Entrepreneurs, both small and large, are grappling with mounting financial pressure as rising interest rates drive up borrowing costs, and uncertainty looms over the uninterrupted supply of gas crucial for manufacturing.
Due to three major factors, entrepreneurs are at risk of defaulting on bank loans, as instalment amounts have increased with rising interest rates, according to business leaders.
At the same time, they said, the period for declaring a borrower a defaulter is now limited to three months.
They fear that interest rates may rise further and that production lines could be disrupted due to gas supply shortages.
Speaking to UNB, several small and large entrepreneurs claimed that law enforcement agencies, especially the police, must play a vital role at the field level, particularly where roads are blocked, and labour unrest erupts based on rumours or minor issues.
They believe that a political government can manage such situations more effectively than an interim government, as political parties have local workers engaged in various business sectors.
Industries Ministry preparing SME Policy 2025 to boost entrepreneurship
The current situation calls for a strong policy to ensure a smooth supply chain of raw materials and a safe production environment.
At the same time, entrepreneurs have sought an uninterrupted supply of gas and electricity, which is essential for cost-effective production.
Political stability and investment confidence
Abdul Awal Mintoo, former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), told UNB that business thrives under a political government.
"Domestic and international trade will expand when a political government assumes state power. The international business community seeks strong commitments from the government for investment, which a political government can provide," he said.
Regarding reforms, he said that an interim government could not carry out all necessary reforms, as they require significant time and public support.
Challenges of high interest rates
Commenting on high interest rates, Mintoo, who is also the vice-chairman of the BNP, said that doing business under such conditions is extremely difficult and that Bangladeshi manufacturers will struggle to compete in the global market.
He attributed the liquidity crisis in banks to the excessive misuse of loans by previous government allies.
Banks accepted short-term deposits but issued long-term loans, leading to higher interest rates to manage funds.
He suggested establishing an alternative investment fund, a viable stock market to provide accessible funds through profit-sharing, or a low-interest investment fund, without which businesses cannot operate comfortably.
Concerns of Young Entrepreneurs
Rubaet Ahmed, a young entrepreneur and owner of Glorious Fashion in Ashulia, told UNB that certain facilities are essential to overcoming the crisis in the export-oriented garment sector.
These include flexible financing, strong security measures, a stable energy supply, and a government one-stop service desk for all export-import-related processes.
Corruption obstacle to business investment, creation of new entrepreneurs: Workshop
He also highlighted the need for greater respect from government officials, which is currently lacking.
“We do not seek anything beyond respect from government officials. However, as entrepreneurs, we are sometimes treated like criminals despite investing capital and creating employment. This must change,” said Ahmed.
Economic outlook and policy recommendations
Dr Masrur Reaz, a former senior economist at the World Bank Group and now a public policy expert in Bangladesh, said that economic activity is gradually picking up following the political transition.
However, the financial sector has faced challenges in recent years due to large-scale loan scams, and many banks have lost their capacity for new investments. As the banking sector is the backbone of the financial system, stability will take time to restore, he pointed out.
"Globally, inflation and interest rates have declined, but Bangladesh’s situation is different due to discrepancies in financial sector data, which has created uncertainty in controlling inflation and interest rates," Dr Reaz said.
Explaining the current scenario, he noted that anyone managing the financial sector under such conditions would face significant challenges.
He advised entrepreneurs to remain patient and make the best use of their existing assets to sustain their businesses.
1 day ago
NBR: International trade to go fully online under a single window next month
In a significant step the National Board of Revenue (NBR) will formally launch Bangladesh Single Window (BSW) system next month to speed up international trade online.
The system, considered by NBR a milestone in making businesses faceless and digital, had a soft launch last month, officials said this week.
This platform aims to streamline the import and export processes by integrating multiple regulatory agencies into a unified digital framework.
The BSW is designed to automate and simplify procedures related to international trade, allowing traders to submit necessary documents such as certificates, licenses, and permits (CLPs) through a single online portal, according to NBR papers.
This initiative is expected to reduce bureaucratic delays, enhance transparency, and lower the costs associated with trade activities.
Initially, seven out of the 19 targeted regulatory agencies have been integrated into the system.
These include the Directorate General of Drug Administration, the Export Promotion Bureau, the Department of Explosives, the Bangladesh National Authority for Chemical Weapons Convention, the Bangladesh Economic Zones Authority, the Bangladesh Export Processing Zones Authority, and the Department of Environment.
“We hope that the 12 others authorities would be on board from next month,” NBR Chairman Md Abdur Rahman Khan told a recently held programme at the NBR.
He said that business people would be able to get various kind of licenses and permits from one single window.
Govt pushes drive to modernise NBR with new tech to augment revenue collection
“Request and deluvery pricess will be done from a single window. It will be a totally faceceless environemnt. The husiness people will not need to go anywhere,” the revenue collecting boss said.
The NBR has mandated that, effective from this February 1 all import and export-related CLPs for these seven agencies must be submitted exclusively through the BSW system, discontinuing manual submissions.
Furthermore, the NBR has set a deadline of March 1 this year for the remaining 12 agencies to integrate into the platform. Failure to comply may result in administrative actions, as emphasised by Finance Adviser Dr. Salehuddin Ahmed during last month's launch event.
While the BSW represents a commendable effort towards modernizing Bangladesh’s trade infrastructure, its partial launch after an eight-year gestation period raises concerns about the efficiency and effectiveness of project implementation.
Initiated in 2017 during the Awami League regime, the project’s prolonged timeline has delayed the anticipated benefits for the trading community.
The initial plan envisioned the integration of 19 agencies. However, as of now, only seven have been incorporated, with the rest pending integration by the newly set deadlines.
The staggered integration of agencies could pose challenges for traders who interact with multiple regulatory bodies, potentially leading to confusion and operational inefficiencies during the transition period.
Moreover, the success of the BSW hinges not only on the technological infrastructure but also on the readiness and adaptability of the involved agencies and the trading community.
Comprehensive training programmes and change management initiatives are essential to ensure a smooth transition from manual to digital processes, officials involved in the project mentioned.
Another critical aspect is the system’s robustness and security, the NBR officials said speaking on condition of anonymity.
NBR to fully operationalise bond automation this month to boost trade efficiency
Given the sensitive nature of trade data, the BSW must incorporate stringent cybersecurity measures to protect against data breaches and unauthorised access.
Past incidents, such as the 2022 breach of the NBR’s server to release cargo at Chittagong Port, highlight the vulnerabilities in existing systems and underscore the need for enhanced security protocols in the BSW.
Furthermore, the effectiveness of the BSW in reducing corruption and enhancing transparency will depend on its ability to minimize human intervention in the approval processes, a senior NBR official said wishing anonymity as he is not authorised to speak on the subject.
While automation can streamline procedures, it is imperative to establish clear accountability mechanisms to prevent potential misuse or manipulation of the system.
The NBR said its initiative to implement the BSW aligns with global best practices in trade facilitation, aiming to create a more efficient and transparent trading environment in Bangladesh.
However, the partial and delayed implementation raises questions about project management and inter-agency coordination.
To realize the full potential of the BSW, it is crucial for the NBR and the associated agencies to expedite the integration process, ensure system security, provide adequate training to stakeholders, and establish robust monitoring mechanisms to oversee the system’s performance and address any emerging issues promptly.
While the launch of the BSW is a step in the right direction for Bangladesh’s trade facilitation, the challenges observed during its rollout highlight the need for a more proactive and coordinated approach to project implementation, according to analysts.
NBR moves to simplify clearance system for smooth business
“The success of the BSW will ultimately depend on the collective commitment of the NBR, the integrated agencies, and the trading community to embrace and effectively utilize this digital platform,” according to another NBR official who also wished anonymity.
1 day ago
Tetulia’s Tulip: Boosting tourism, regional economy
Tetulia, a picturesque region in Panchagarh, has once again become a hub of vibrant tulip blooms, marking the fourth consecutive year of successful tulip cultivation.
This cultivation of the flower is not only attracting tourists but has also significantly contributing to the socio-economic development of the area, said locals.
Eco-Social Development Organization (ESDO), in collaboration with local women entrepreneurs, has been working for promoting tulip farming as a means of women’s empowerment.
This year, 13 women entrepreneurs cultivated tulips on one acre of land in Dorjipara village, Tetulia Union.
While tulips are traditionally associated with the Netherlands and Kashmir, Tetulia’s unique cold climate has proven ideal for their cultivation.
This year, nine varieties of tulips—Sunny
Rajkumar, Pink Ardour, Parade, Oxford, Orange Van Borlsch, Ferdex, Appeldoorn, Blushing Elite, and Mystic Van Eijk—have been successfully grown, adding to the garden’s allure.
The tulip garden was officially opened to visitors by ESDO’s Executive Director Dr. Muhammad Shahid Uz Zaman, and its Director (Administration) Dr. Selima Akhter, at a ceremony recently.
The garden with multicoloured Tulip has become a mesmerizing attraction for tourists and locals alike.
The tulips planted on January 10 began blooming within 20-25 days and will continue to enchant visitors for two months.
The garden has become a hotspot for eco-tourism, drawing thousands of tourists, said locals.
Families, students, and photography enthusiasts are flocking to the site, capturing the beauty of the tulips.
Social media platforms are abuzz with stunning images and videos of the garden, further amplifying its popularity.
Visitors also have the opportunity to purchase tulips and buds at Tk 150 each, adding to the garden’s economic impact.
Tulips of Tetulia: Prospects as bright as the blooms
Entry fees for the garden are set at Tk 20 for locals and Tk 50 for tourists from other districts.
1 day ago
Keeping up pressure on govt still BNP’s strategy to have quick national election
Although the party has been assured that the election will be held by December this year, BNP policymakers have decided to continue escalating pressure on the interim government to present a clear election roadmap and ensure that no local body elections are held before the national one.
Talking to UNB, some party policymakers expressed concerns that certain quarters may attempt to create obstacles to the national election in various ways, potentially exerting pressure on the government to hold the local body elections first.
As part of the party’s strategy, they said BNP will hold public rallies in 67 organisational districts across the country, starting tomorrow (Wednesday), to demonstrate its popularity and organisational strength.
In light of the current political situation, the BNP leaders said they have already instructed their leaders and activists to remain alert and ensure massive public participation in all rallies, demanding a prompt election and protesting public suffering.
Govt working to arrange polls by December: Fakhrul
Besides, they said, their party will now focus on election preparations, including, first and foremost, the selection of suitable candidates.
Before launching their nationwide rally programme, BNP Secretary General Mirza Fakhrul Islam Alamgir, along with two other senior leaders, met Professor Muhammad Yunus to inform him of the party's stance and views on the upcoming election.
Following the meeting, BNP Standing Committee members convened and held an extensive discussion on the outcome of their one-and-a-half-hour talks with the Chief Adviser.
A BNP Standing Committee member, speaking anonymously, said the interim government assured them that the election would be held by December next. “However, our concerns about the election have not yet been alleviated, as there are still several visible signs indicating a potential delay.”
He said BNP wants the government to keep its commitment by promptly announcing an election roadmap. “So, we have decided to maintain our pressure on the government in various ways, including through street programmes, until a clear election roadmap is presented.”
The BNP leader also said student leaders involved in the Anti-Discrimination Movement and Jamaat-e-Islami are trying to delay the election, exerting pressure on the government to conduct local body polls before the national election.
“But we will not accept any election before the national one. We will thwart any attempt to delay the national election,” he said.
BNP delegation sits with Chief Adviser
The BNP leader said their party will hold rallies in all districts between February 12-25 to stage a massive show of strength and garner public support for their position on promptly arranging the national election.
Another BNP Standing Committee member said there is no alternative to an election to resolve the ongoing crisis. “It seems the government has come to realise this truth. However, a certain party and group are trying to unsettle the government by opposing the national election before the local body polls. BNP will offer all-out support and cooperation to ensure that the government is not swayed by any external pressure.”
“We will ensure the participation of a large number of people in all our rallies to give the government confidence that the majority of the country’s population is behind it in holding the election as early as possible,” he said.
The BNP leader also revealed that their party has started its election preparations with December in mind.
Having already announced its intention to form a national government if it wins the next election, he said BNP has begun initial discussions on how to allocate seats with like-minded parties that have supported them in the anti-fascist movement.
At the same time, he said their party has started talks on selecting suitable BNP candidates for the election.
“Basically, BNP Acting Chairman Tarique Rahman is overseeing this matter. He is determined not to nominate any controversial candidates in the next election. Therefore, we will prioritise candidates with a clean image,” the BNP policymaker said.
Election Roadmap: BNP delegation to meet Dr Yunus Monday
BNP Standing Committee member Khandaker Mosharraf Hossain said the Chief Adviser assured their party Secretary General Mirza Fakhrul Islam Alamgir that the election would be held by December.
“We want to trust this assurance. However, we will remain vigilant and closely monitor the government's activities,” he said.
The BNP leader said they wanted the election to be held by July-August, but the government indicated that it would not be possible to complete preparations by that that time.
“We are giving the government until December to arrange the election. We hope they will keep their promise and announce an election roadmap very soon,” he said.
Mosharraf said once the election roadmap is announced, the people of the country will rise up to thwart any efforts to derail the process. “Thus, the government must focus on holding the national election as soon as possible.”
When asked about the party's ongoing nationwide rallies, he said BNP will continue to hold these rallies to press for various demands, alongside the prompt holding of the national election.
In response to a question, Mosharraf said BNP may share seats with other parties, as in previous elections.
Another BNP Standing Committee member, Mirza Abbas, said an evil force is attempting to delay the election under various pretexts, including holding local body polls before the national election.
“We have fought for 17 years on the streets for a credible national election, not for local body elections. We hope that those advocating for local body elections will reconsider their stance in the interest of the country,” he said.
Fakhrul hails govt for launching ‘Operation Devil Hunt’
Abbas warned that holding local body elections now would provide an opportunity for the fascist Awami League leaders and activists to stage a comeback. “We won’t allow that to happen.”
He also reaffirmed BNP's commitment to supporting the interim government in holding a free, fair, and acceptable election. “But anyone who tries to create obstacles to the national election will be given a fitting reply.”
1 day ago
Monetary Policy: Private sector unhappy with lower credit flow target
Bangladesh Bank has announced another tight monetary policy to curb inflation, but business leaders oppose the move, arguing that its objectives may not be achieved without due consideration for investment and employment.
The new policy, they claim, fails to meet the needs of the business sector and the level of investment required for Bangladesh's economic growth.
Economists acknowledge that the economy is gradually stabilising, but they stress that monetary policy alone cannot combat inflation—other factors must also be taken into account.
They argue that inflation has eased due to an increased supply of food items from domestic sources.
Monetary policy to remain tight, targeting inflation between 7-8 percent by June
Talking to UNB, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Abdul Awal Mintoo said monetary policy is an essential tool for controlling inflation. “I do not believe a contractionary monetary policy alone can effectively control inflation in a country like Bangladesh. Investment policy should also be revised.”
He explained that a reduced money supply in the private sector would negatively impact businesses and trade, particularly since almost all raw materials used in production must be imported.
“We import nearly all consumer goods except for one or two. In such a scenario, adopting a contractionary monetary policy with the expectation of reducing inflation is not logical,” said Mintoo, a prominent businessman and political figure.
He attributed the decline in inflation in December and January to the ample supply and lower prices of winter vegetables, which are abundant in Bangladesh from December to February.
BB's new monetary policy aims to bring inflation down to 7-8% by June
“When the supply of vegetables declines, prices will rise. Besides, we will need to import 2 million tonnes of rice, which will require foreign exchange. As foreign exchange is diverted to these sectors, the local currency, taka, may depreciate,” he warned.
President of the Dhaka Chamber of Commerce and Industry (DCCI) Taskeen Ahmed told UNB that Bangladesh Bank’s decision to maintain a contractionary monetary policy in H2 FY2024-25, keeping the policy rate at 10 percent, is concerning for businesses.
“This rigid stance hampers private sector credit growth and economic expansion. The private sector relies heavily on banks for investment, and high interest rates increase production costs, fueling inflation,” he said.
Despite inflation easing to 9.94 percent in January 2025 from 10.89 percent in December 2024, it remains above the desired level, he pointed out.
Ahmed also expressed concern over the decision to maintain the private sector credit growth target at 9.8 percent for January-June FY25, while actual growth fell to 7.3 percent in early 2025—the lowest in 12 years.
Economist and former Bangladesh Bank chief economist Mustafa K Mujeri said, “In Bangladesh, inflation cannot be controlled by monetary policy alone. Market management supervision and fiscal policy measures are also necessary.”
He noted that the contractionary monetary policy negatively affects investment, employment, and supply, preventing demand and supply from being fully reflected in the economy.
He, however, pointed out some positive signs for the economy, such as stability in foreign exchange reserves after a prolonged period of volatility. “The exchange market will stabilize further as inward remittances, exports, and foreign aid increase, along with improved agricultural production,” Mujeri said.
Although foreign direct investment (FDI) has declined in recent months, he believes the situation will improve with political stability.
Dr Masrur Reaz, former World Bank economist and public policy expert, told UNB that macroeconomic stability has returned after a long period of instability, which is a positive development for the domestic economy.
Explaining the Purchasing Managers’ Index (PMI), a key economic indicator used to assess economic health, he noted, “The purchasing power of Bangladeshis has increased, which has positively impacted the consumer market. This indicates that the economy remains vibrant despite various challenges.”
Masrur described the monetary policy as both timely and necessary for curbing high inflation. He noted that the decision not to raise the policy rate would provide some relief to the private sector.
He also welcomed Bangladesh Bank's stance on non-performing loans (NPLs), acknowledging that the issue had previously been concealed due to political influences and corruption. He added that adopting a global standard for NPL calculations would enhance public confidence in the banking sector.
1 day ago
Eviction and Encroachment: A never-ending cycle along Sunamganj-Sylhet Highway
The Sunamganj-Sylhet regional highway remains trapped in an endless cycle of eviction and encroachment as unauthorised roadside establishments keep reappearing despite repeated demolition drives.
This persistent issue is causing severe traffic congestion, frustrating commuters and highlighting weaknesses in enforcement.
Every year, authorities conduct eviction drives to clear makeshift shops and markets lining the highway.
But within days, traders and encroachers reclaim the land, setting up businesses as if nothing happened.
The resulting congestion disrupts the flow of vehicles, turning short commutes into prolonged delays.
On January 15, the Roads and Highways Department (RHD) dismantled around 300 illegal establishments between Wezkhali and Jauabazar.
Durning a recent visit to Dirai Road Point, theUNB correspondent found encroachers had already returned, rebuilding their makeshift shops with bamboo and tin.
Time to save rivers from pollution, encroachment: Adviser Sakhawat
Zahur, a local hotel owner, was among those reconstructing his business on the same spot.
"This is my livelihood. I have no choice but to start over," he said. Similarly, Modern Hans Bhat, a restaurant that was demolished during the drive, resumed operations within days with a new signboard.
For many traders, eviction is just a temporary disruption. “Authorities conduct evictions every year, and we prepare for them. It’s just a routine event for us,” said a restaurant worker, reflecting the widespread perception that eviction drives lack long-term impact.
Traffic Chaos and Public Frustration
The unchecked encroachment has significantly slowed down traffic along the highway.
Local residents report that journeys that should take 10 minutes now stretch to hours due to roadside businesses obstructing movement.
The congestion also affects the transportation of goods, making life difficult for commuters and traders alike.
Amir Hossain, a frustrated resident, criticised the ineffective approach. "It’s a never-ending cycle of eviction and reoccupation. Public funds are being wasted without any real change."
Call for Sustainable Solutions
Experts argue that weak enforcement, the absence of legal action, and inadequate post-eviction monitoring have rendered the eviction drives futile.
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Faisal Ahmad, a member of the Sunamganj Citizens' Committee, stressed the need for a strategic solution.
“We’ve seen these eviction drives for years, but they never produce lasting results. Authorities must ensure proper monitoring and provide alternative locations for affected traders,” he said.
Officials Acknowledge the Challenge
Shahadat Hossain, Sub-Divisional Engineer of the RHD, admitted the difficulty of keeping encroachers off the highway. “We remove illegal structures, but they return. There’s a lack of awareness and respect for the law. Another eviction drive will be necessary soon.”
When asked about the repeated spending of public funds on evictions, he suggested a more drastic approach. "Unless we establish a permanent office along the road or continuously issue warnings, encroachment will persist."
With eviction drives failing to deliver lasting results, experts and locals are urging authorities to adopt a sustainable strategy.
Without strict enforcement, legal consequences, and alternative solutions for traders, the Sunamganj-Sylhet highway will remain locked in its never-ending cycle of eviction and encroachment.
2 days ago
School located too close to railway track in Cumilla, endangering students
In Laksham upazila of Cumilla, the Topya Mayurunnessa Government Primary School is facing serious safety concerns, thanks to its location directly next to a railway track.
With no boundary wall or any other barrier to separate the school from the tracks, over a hundred children who attend the school are at risk of potential accidents. This hazardous situation has led to reluctance among parents to send their children to school, further exacerbating the concern.
The school, established in 2017, is situated in the Topya village of North Union in the upazila, on the busy Laksham-Noakhali railway route. According to local sources, there are currently 115 students enrolled at the school, but if the safety concerns were addressed, the number of pupils could be significantly higher.
Abdul Wadud Khokon, an education enthusiast from Topya village, said, “Students from multiple surrounding villages, including Manpal, Topya, and Krishnapur, attend this school. However, without a boundary wall, the children are constantly in danger. If this issue isn't addressed, a serious accident could occur at any time.”
Parents obviously express their concerns. Rashida Khatun, a parent from Krishnapur, said, “I send my son to school but always stay fearful, never knowing when a train will pass or when he might accidentally step onto the tracks.”
To manage the immediate danger, school teacher Bidyut Pal said that teachers stand along the tracks whenever a train passes, to prevent students from approaching the railway. The local community has also been active in ensuring student safety.
Yasmin Akter, the headmaster of the school, said that they have applied to the Upazila authorities for the construction of a boundary wall, and have been working on getting their request approved for the past two years.
Delwar Hossain Mojumdar, the Upazila Education Officer, acknowledged the risk to students and said, “We are aware of the danger facing the students of this school. An application has been submitted for the construction of a boundary wall, and we expect it to be approved soon.”
2 days ago