Distinguished Fellow of the Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya on Saturday highlighted two types of reforms - those left unfinished by the previous government and those essential to advancing Bangladesh beyond an LDC status. Speaking at a dialogue, he said prioritisation and a clear roadmap for reform, alongside prompt, accountable and consensus-driven implementation, are essential. Reform discussions, he said, should not be restricted to state superstructures but should also address grassroots economic issues. The Centre for Governance Studies (CGS) hosted the informative dialogue session to discuss the reform related to economic policies, including the banking sector and external loans at the Bangladesh Institute of International and Strategic Studies (BIISS) Auditorium. CGS Executive Director Zillur Rahman moderated the event. The speakers included Munira Khan (Chair, CGS), D. Rashed Al Mahmud Titumir (economist), Parvez Karim Abbasi (East West University), Prof Sayema Haque Bidisha (DU Pro-VC), Shahidul Islam Zahid (Professor, DU), Abdul Awal Mintoo (former FBCCI President), Anwar-ul Alam Chowdhury (BCI President), Muhammad Abdul Mazid (Chairman, Social Development Foundation), Md Jashim Uddin (former FBCCI President), Shahedul Islam Helal (former BCI President), Asif Ibrahim (FBCCI Committee Chair), Abdul Haque (Barvida President), Sabur Khan (DIU Chairman), Prasenjit Chakma (Chief Consultant, Padeco Co Ltd), Mir Nasir Hossain (former FBCCI President), MS Shekil Chowdhury (Centre for Non-Resident Bangladeshis), Dr M Abu Eusuf (DU), Suprova Suvha Zaman (DU student), Sadik Mahbub Islam (DU alumnus), and Saleh Ahmed (political analyst). NGOs want recognition of their contribution to Bangladesh’s development: Debapriya Zillur Rahman observed that the term ‘reform’ has long been part of Bangladesh’s national vocabulary, and once a disparaged concept, it has resurfaced with prominence after the mass uprising. People are now seeking change, as many institutions are not functioning as intended, he added. Chief Adviser Prof Yunus outlined several areas of reform, which have served as a foundation for these dialogue events. Dr Debapriya said the current government is unique, emerging from a mass uprising only months ago. While many are criticising the government and offering recommendations, few question why these suggestions were not implemented by those previously in power. A crucial question, he argued, is why those responsible for employment creation and job growth over the last 15 years have fallen short. ‘Country’s labour force deprived of fair wages over last decade’: Dr Debapriya “The state’s institutional dysfunction, distorted statistics and legal system manipulation for political gain all require scrutiny. Although the government has attempted to control commodity prices, results remain limited, though action is ongoing,” he said. Munira Khan talked about corruption, noting that it would be less problematic if illicit funds remained within Bangladesh. However, a significant amount of these funds is laundered abroad, a trend that must be halted. Dr Rashed Titumir addressed rising prices, noting that Bangladesh is a substantial importer of food. Although past narratives blamed external factors for price hikes, particularly oil affecting fertiliser costs, he questioned why importers have not engaged in dialogue with the government. He also asked why a comprehensive social welfare system, using the National ID system, has not yet been implemented. Dr Titumir questioned why the previous government’s budget framework is still being followed, despite insufficient industrialisation. Bangladesh could leverage Professor Yunus’s international reputation to attract industry but has yet to take full advantage of this. Parvez Karim Abbasi stated that Bangladesh’s economic recovery prospects for the next few years remain slim. He argued that the prior government mismanaged rather than misgoverned the economy, leaving Bangladesh to bear the cost. While US imports of Bangladesh RMG have increased, exports to the US have declined, partly due to Indian competition and lobbying efforts portraying Bangladesh as unstable. With international debt continuing to rise, Abbasi stressed that addressing corruption and retrieving laundered money, though popular topics, require political will and unity, especially as significant reforms are nearly impossible under an unelected government. Abdul Awal Mintoo explained that only 5% of the workforce enters government jobs, leaving the private sector as the primary employer. ‘Committee preparing White Paper will highlight corruption issues, not catch culprits’: Dr. Debapriya He pointed out that investment, crucial for job creation, depends on a stable socio-political environment. But, he said, Bangladesh’s low savings rate hampers investment. Mintoo argued that political and economic issues are intertwined, and without political stability, economic recovery will remain out of reach. Asif Ibrahim highlighted that Bangladeshi youths often feel excluded from the political process, as many have never voted. Survey data indicates that young people view a lack of transparency, accountability and vested interests as detrimental to the economy. Ibrahim proposed a job registration system and a youth credit card programme to facilitate access to loans and employment, and called for a commission to monitor essential commodity prices, as well as long-term private-sector financing mechanisms. Prasenjit Chakma suggested that digital platforms could disrupt market syndicates by linking producers directly with consumers, and called for affirmative action and tax incentives to support Aboriginal communities and SMEs. Mir Nasir argued that development must include the masses to have lasting benefits, and pointed out that Bangladesh has not yet capitalised on its demographic dividend, and education policy should encourage productivity beyond Dhaka. He also said the country’s reliance on banks as the sole finance mechanism and the resulting trust deficit in business.    

Bangladesh's post-COVID recovery continues to be impacted by high inflation, balance of payments deficit, financial sector vulnerabilities and increasingly limited job opportunities for its youths, especially women and educated youths, says the World Bank. The multinational lender that provides financial support to developing countries for projects aimed at reducing poverty and fostering economic development said this in its twice-yearly-update, released on Tuesday. “In recent years, Bangladesh’s growth has not translated into job creation for the large number of youths entering the job market every year. Particularly, the educated youth and women faced difficulty in getting jobs to fulfill their aspirations,” said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan. He went on to say, “But time and again, Bangladesh has shown extraordinary resilience and determination in the face of adversity. I am confident that with urgent and bold reforms to enhance economic and financial governance, improve business environment, Bangladesh can return to a strong and inclusive growth path, with millions of jobs for its youth.” The latest Bangladesh Development Update highlights that global and domestic factors have created a challenging macro-fiscal context for the country. Bangladesh's real GDP growth moderated to 5.2% in FY24, primarily due to weak consumption and exports. World Bank cuts Bangladesh’s growth to 4 pc in FY25 for floods, uncertainty It is projected to decelerate to 4.0 percent in FY25, driven by subdued investment and industrial sector activities, before accelerating to 5.5 percent in FY26 and returning to a robust growth trajectory thereafter. Bangladesh also faces increasing income inequality, particularly in urban areas. From 2010 to 2022, Bangladesh's Gini index—a measure of income inequality—increased by nearly three points from 0.50 to 0.53. The report highlights urgent and bold reforms that are necessary to help the country return to a strong, inclusive and sustainable growth path. Despite the overall unemployment rate declining between 2016 and 2022, young people face significantly higher unemployment rates, particularly in urban areas. The availability of jobs has declined for urban educated youth, and job creation in large industries, like the ready-made garments sector, has stagnated. Since 2016, while more jobs were created in Dhaka, three divisions—Chattogram, Rajshahi, and Sylhet—faced significant net employment losses.  Inflation, driven by high food and energy prices, averaged 9.7% in FY24. Inflation spiked in the month of July and moderated in August. It is expected to remain elevated in the near term, but gradually subside in the medium term if supply-side issues stabilize and prudent monetary and fiscal policies are maintained.  World Bank Vice President for South Asia Region to meet CA, Finance Adviser The fiscal deficit is estimated to have moderated marginally to 4.5% of GDP in FY24 and is expected to remain within the government's target of 4.3 percent of GDP in FY25, with fiscal space for productive expenditures increasing only gradually. The implementation of the Annual Development plan declined to 80.9 percent in FY24 compared to 85.2 percent in FY23. The current account deficit narrowed to $6.5 billion in FY24, thanks to a contraction in imports and robust remittances. Remittances declined in July due to disruptions but rebounded. The balance of payments deficit also improved. “Pressure on the external sector is expected to persist in FY25, easing later if global conditions improve and exchange rate flexibility increases,” said Dhruv Sharma, World Bank Senior Economist and Co-author of the report. In May 2024, Bangladesh Bank implemented a crawling peg exchange rate system as a step towards a market driven exchange rate system. This led to a narrowing in the gap between the formal and informal exchange rates. While the banking sector faces tight liquidity conditions and elevated non-performing loans the Bangladesh Bank has made restoring discipline and stability in the sector a priority alongside managing inflation.

Bangladesh Jamaat-e-Islami has put forward a comprehensive set of 41 proposals for state reform, including key changes to the judiciary, the abolition of electronic voting machines (EVMs), and police law reforms. The party also called for increasing the age limit for government jobs to 35 years and raising the retirement age to 62. Jamaat seeks reform first for successful elections The proposals were unveiled today by Jamaat’s Nayeb-e-Ameer Dr. Syed Abdullah Mohammad Taher during a press conference at the Westin hotel in Dhaka’s Gulshan. Jamaat's Ameer, Dr. Shafiqur Rahman, was also present at the event. Jamaat Amir calls for national unity At the outset of his speech, Dr. Taher prayed for those who lost their lives during the July-August movement, calling on Allah to accept them as martyrs. He accused the Awami League of establishing authoritarian control over the country, saying, "Awami League entrenched its power through dictatorship, capturing the administration, executive branch, and judiciary. Thousands of cases were filed to create a reign of oppression." AL's remnants still actively hatching conspiracies against interim govt: Jamaat Secretary General Dr. Taher emphasized the need for a separation between the judiciary and the executive branch. “To ensure justice, the judiciary must be reformed,” he said, adding that civil cases should be resolved within five years and criminal cases within three years. Restoration of Caretaker Government and EVM Abolition Jamaat-e-Islami also reiterated its demand for the reinstatement of the caretaker government system for national elections, accusing the Awami League of dismantling the electoral process. "The ruling party destroyed the electoral system by abolishing the caretaker government," the party said, stressing the need for its permanent restoration and the cancellation of the EVM system. Police Reforms and Accountability The party also called for reforms in police laws, proposing the creation of an independent commission for transfers and promotions to eliminate political interference. Dr. Taher advocated for incorporating religious and moral education into police training and reducing the use of lethal weapons. Reforms in Government Employment On government employment, Jamaat proposed that job applications should be free of charge and that the maximum age limit for entry into government jobs be raised to 35 years for the next two years and then set permanently at 33 years, with retirement at 62. The party also demanded the cancellation of appointments obtained through leaked examination papers or corruption. Strengthening the Anti-Corruption Commission (ACC) to operate independently was another key recommendation. Term Limits for Prime Ministers Jamaat proposed a two-term limit for anyone holding the office of Prime Minister, advocating for a balance of power between the Prime Minister and the President. Cultural and Educational Reforms The party also suggested reforms in the cultural and educational sectors, recommending the inclusion of teachings about Prophet Muhammad (PBUH) in all levels of education. They further called for the elimination of obscenity in films, television dramas, and digital content. Foreign Relations and Hajj Costs On foreign policy, Dr. Taher emphasized the importance of fair and balanced relations with neighboring countries, particularly on shared rivers with China, Nepal, and India. Jamaat also urged the government to take effective steps to reduce the costs of Hajj and Umrah for pilgrims. Accountability for Genocide Jamaat Ameer Dr. Shafiqur Rahman demanded that those involved in genocide who had fled the country be brought back and tried in court. Election vs. Reform: Jamaat’s Roadmap When asked about the sequence of elections and reforms, Dr. Shafiqur Rahman said that there would be two roadmaps—one for reforms and one for elections. He emphasized that neither process should be excessively long or rushed, noting, “There are many political parties in the country. For a vibrant parliament, the public must vote for the right candidates, not just the party.”