The Transparency International (TIB) findings revealed in household surveys since 2010 show that from 2009 to April 2024, the included service sector institutions have collected an estimated total of Tk 146,252 crore in bribes. The households that paid bribes or unauthorized money for services from May 2023 to April 2024 spent an average of Tk 5,680 each. The total estimated bribes or unauthorized payments across all sectors during this period amounted to Tk10,902 crore, which is 1.44 percent of the national budget for 2023-24 and 0.22 percent of GDP. EuroCham launched, seen as new milestone in Bangladesh-EU business relations The passport, BRTA, law enforcement, judiciary, and land sectors were found to be the most corrupt in the service sector, with 70.9 percent of Bangladeshi households reporting corruption between May 2023 and April 2024. Furthermore, 50.8 percent of households experienced bribery at this time, with law enforcement, BRTA, and passport services having the highest percentages. TIB revealed these findings at a press conference unveiling the “Corruption in Service Sectors: National Household Survey 2023” results. The survey of 2023 revealed that 70.9 percent of households in Bangladesh has experienced corruption in some form while availing services from various public and private sectors or institutions. Passport services 86 percent were identified as the most corrupt sector, followed by BRTA 85.2 percent, law enforcement agencies 74.5 percent, judicial services 62.3 percent, land services 51 percent, public healthcare 49.1 percent, and local government institutions 44.2 percent. Overall, 50.8 percent of households reported paying bribes or being forced to pay unauthorized money to access services. The highest incidences of bribery were reported in passport services 74.8 percent, BRTA 71.9 percent, law enforcement agencies 58.3 percent, judicial services 34.1 percent, land services 32.3 percent, and local government institutions 29.7 percent. Among the households that paid bribes, 77.2 percent cited the reason as “services cannot be obtained without paying a bribe,” highlighting a concerning institutionalization of bribery practices. Tensions between Bangladesh and India grow over attack on Agartala mission The survey collected data on corruption and harassment encountered by selected households while obtaining services from service sectors between May 2023 and April 2024. Data for this survey were collected between May 13 and August 3, 2024.  

The interim government of Bangladesh is moving to establish a comprehensive 'Statistics Policy' to address longstanding concerns about inaccuracies in data published by the Bangladesh Bureau of Statistics (BBS). This initiative follows widespread allegations that the BBS had provided misleading economic data under the previous Awami League government. During the Awami League's tenure, the BBS was repeatedly accused of inflating GDP growth figures while downplaying inflation, raising serious doubts about the credibility of the country’s official statistics. Interim Government committed to curbing essential commodity prices by breaking syndicates: Mahfuj Alam “We are working to formulate a Statistics Policy, which will soon be approved by the Advisory Council,” said Planning Adviser Dr. Wahiduddin Mahmud at a recent press briefing following an ECNEC (Executive Committee of the National Economic Council) meeting. He emphasized the need for a clear, unified approach to ensure the accuracy and integrity of national data. BBS Under Scrutiny The BBS, which operates under the Ministry of Planning, faced consistent criticism for its inability to provide reliable data. Their capacity is not as strong as statistical institutions in other developing countries, Dr. Wahiduddin said. He pointed out that political pressure had influenced the BBS's economic data, particularly during periods of economic growth and inflation reporting. Sources within the Planning Commission and BBS confirmed that the agency struggles with capacity issues, making it difficult to collect and analyze accurate data. Furthermore, political interference has been a significant obstacle, particularly concerning key economic indicators such as GDP and inflation. Acknowledging these challenges, Dr. Wahiduddin reiterated his commitment to maintaining the independence of the BBS. “I have already informed them that I will not intervene in their reports, regardless of any shortcomings. The data, whether high or low, must stand on its own merit,” he said. NBR focuses on boosting low tax-to-GDP ratio as major business figures come under scrutiny Strengthening the BBS’s Capacity Dr. Wahiduddin, a well-known economist, has stressed the importance of empowering the BBS as an independent entity. He aims to enhance its ability to provide unbiased and accurate data without external interference. Discussions with officials from both the Planning Commission and BBS indicate a strong focus on capacity-building initiatives to improve the bureau's performance. The BBS is currently the sole national statistical office in Bangladesh, responsible for generating and publishing critical data on population, agriculture, industry, and the broader economy. However, under past administrations, its activities were often governed by orders and circulars, lacking a cohesive policy framework. Future Reforms The BBS gained legal grounding through the passage of the 'Statistics Act' on February 27, 2013, which formally outlined its responsibilities. According to this law, the bureau is tasked with producing accurate and timely statistics, conducting national censuses, and delivering data that meets the needs of policymakers, researchers, and other stakeholders. However, the policy aims to modernize these functions and address gaps in the existing system. Among the bureau’s future tasks will be updating the National Strategy for the Development of Statistics, standardizing statistical programs to international standards, and implementing a National Data Bank. The implementation of the Statistics Policy is expected to mark a significant step toward bolstering the integrity of Bangladesh’s statistical system, ensuring that data-driven decisions can be made with confidence. Inflation decreases by 1.17 % in August: BBS

The parliament of Bangladesh on Sunday (June 30, 2024) passed the Tk 797,000 crore national budget for FY 2024-25 setting the goal of economic growth at 6.75 percent and keeping annual inflation at around 6 percent. Finance Minister Abul Hassan Mahmood Ali moved the Appropriations Bill 2024, seeking a budgetary allocation of Tk 12,41,752 crore which was passed by voice votes. Earlier on Saturday, the parliament passed the Finance Bill 2024 with some minor changes. Following the proposal mooted in the House by the Finance Ministry for the parliamentary approval of the appropriation of funds for meeting necessary development and non-development expenditures of the government, the ministers concerned placed justifications for the expenditure by their respective ministries through 59 demands for grants. Read more: Proposed budget has high hopes, and low direction to achieve goals: RAPID Earlier, the parliament rejected, by voice votes, a total of only 251 cut-motions that stood in the name of opposition members on 59 demands for grants for different ministries. A total of seven MPs, including from Jatiya Party Mujibul Huq, Hafiz Uddin Ahmed, and Independent MP Pankaj Nath, Md Hamidul Haque Khandker, Md. Abul Kalam, Md Suhrab Uddin and Md. Nasser Shahrear Zahedee placed the cut motions. They were, however, allowed to participate in the discussion on Law Ministry, Secondary and Higher Studies Division and Social Welfare Ministry. Later, Speaker Shirin Sharmin Chaudhury quickened the process of passing the demands for grants for different ministries without giving a lunch break. Opposition and independent MPs were present in the House when the Appropriation Bill was passed, and they did not raise objection to passing the bill. Read more: Finance Bill 2024, entailing budget for next fiscal, passed in Jatiya Sangshad

Bangladesh has secured the third position in the South Asia region on the 2024 Global Peace Index (GPI), according to the latest report by the Institute for Economics & Peace (IEP).  Bangladesh ranks 93rd globally with an overall score of 2.126, reflecting a slight deterioration in peacefulness from the previous year. South Asia is the third least peaceful region globally, ahead of only the Middle East and North Africa (MENA) and sub-Saharan Africa. The region experienced a minor decline in peacefulness over the past year, with four of the seven countries recording deteriorations in their overall scores. The primary driver of this decline was an increase in military expenditure as a percentage of GDP and a reduction in payments for UN peacekeeping funding since 2012. Despite these challenges, there were improvements in the Ongoing Conflict and Safety and Security domains across the region.  Read more: Bangladesh ranks 141 out of 164 on the Freedom Index Bhutan emerged as the most peaceful country in South Asia, maintaining its top position since 2011 and ranking 21st globally. Bhutan also recorded the largest increase in peacefulness in the region, improving its overall score by 2.6 percent. In contrast, Afghanistan remains the least peaceful country in the region, ranked 160th globally. Afghanistan's peacefulness deteriorated due to increases in militarization and safety and security concerns, although some indicators have shown significant improvements in recent years. India, the largest country in South Asia, improved its overall peacefulness by 1.6 percent over the past year, achieving its highest level of peacefulness since the inception of the index. The improvement was mainly due to a reduction in the intensity of internal conflicts, particularly in the border regions. The 2024 GPI, now in its 18th edition, ranks 163 independent states and territories based on their level of peacefulness, covering 99.7 percent of the world's population. The index is widely regarded as the leading measure of global peacefulness, offering a comprehensive analysis of trends in peace, its economic value, and strategies for developing peaceful societies. Read more: US says it will remain Bangladesh’s steadfast partner in Rohingya refugee response

In an effort to promote a robust domestic debt market, the Bangladesh government is strategizing to increase its share of marketable securities in the coming years. According to a recent Finance Ministry document, the administration is also committed to continued issuance of Islamic securities Sukuks but has currently shelved plans for Eurobond issuances on the global market. As fiscal deficits loom, with projections showing a deficit of Tk 2792.3 billion for FY 2024-25 and Tk 3170.7 billion for FY 2025-26—equating to 5% of GDP each year—the government underscores the need for strategic domestic borrowing. The focus remains on minimizing borrowing costs through traditional external creditors, which are preferred, the document detailed. The strategy for addressing deficits includes an ambitious target of collecting Tk 1200.3 billion from external sources in FY 2024-25 and Tk 1306.4 billion in FY 2025-26, each constituting 2.1% of GDP. Domestic sourcing is expected to contribute significantly more, with plans to collect Tk 1677.7 billion and Tk 1864.4 billion over the same periods, representing 2.9% of GDP. UK's BII supports MSMEs, women entrepreneurs in Bangladesh with $50m debt commitment to BRAC Bank Significantly, the banking sector is anticipated to contribute Tk 1384.9 billion in FY 2024-25 and Tk 1547.3 billion in FY 2025-26. In comparison, non-banking sectors will contribute Tk 292.8 billion and Tk 317.1 billion respectively. Savings certificates will add Tk 191.4 billion and Tk 190.3 billion, while other sources are projected to contribute over Tk 100 billion annually. The government maintains a prudent deficit financing policy to stave off debt distress, keeping the deficit steady at around 5% of GDP and maintaining a stable debt level at around 33% of GDP in recent years, the finance ministry document explained. This balanced approach aims to mitigate the risks associated with deficit financing while prioritizing sustainable economic development. In terms of the medium-term outlook, the government expects domestic borrowing to remain stable at 2.9% of GDP. However, the approach to marketable securities will see a significant nominal increase, with a planned reduction in the reliance on higher-cost National Savings Certificate instruments, which will see a gradual decrease in their contribution to the financing mix. External financing is also projected to increase nominally between FY 2023-24 and FY 2025-26, driven by greater disbursement for large projects and increased budget support, though dependent on the pace of project implementation. Finance ministry to cut corporate tax for industries, consumer goods in upcoming budget Bangladesh has received considerable budget support from external sources in recent years, a trend expected to continue in the medium term, the document stated, highlighting the ongoing commitment to leveraging both domestic and international financial strategies to meet fiscal challenges.

The government of Bangladesh has undertaken eight strategic initiatives aimed at transforming the nation into a cost-effective, sustainable, innovative, intelligent, and knowledge-based 'Smart Bangladesh' by 2041. These initiatives are designed to enhance the ICT sector's contribution to the GDP, expand digital services, and foster innovation across various domains. Key Initiatives and Targets ICT Sector Growth: The government aims for the ICT sector to contribute 20 percent to the GDP by 2041. This ambitious target is part of a broader strategy to diversify the nation's economic foundations. Digitization of Government Services: By 2041, 100 percent of government services will be digitized, making them more accessible to the populace. This effort seeks to streamline processes and enhance the efficiency of public service delivery. Boost in ICT Exports and Employment: The plan includes increasing ICT exports to USD 5 billion and expanding ICT employment to 3 million by 2025. Additionally, professional mentorship will be provided to 1,000 Bangladeshi startups by 2025 to nurture emerging entrepreneurs. Innovation Hubs: Establishment of 10 innovation hubs within the top universities aims to stimulate creativity and technological advancement. Startup Ecosystem: The goal to build at least 5 unicorns—startups valued at over USD 1 billion—reflects the government's commitment to fostering a robust startup ecosystem. Specialized Labs for 4IR Technologies: Universities will host specialized labs focusing on cutting-edge technologies such as Robotics, AI, IoT, Big Data, Blockchain, and AR/VR, preparing students for future job markets. Smart Digital Leadership Academy and 4IR Centre: These institutions will play pivotal roles in cultivating leadership and technical skills necessary for the Fourth Industrial Revolution. Read more: Govt to include Smart Bangladesh in mid-term dev plan: Official Document Current Progress and Future Plans With over two-thirds of Bangladesh's population in the workforce, skill development and employment generation, particularly in the ICT sector, are high priorities. The government is actively transforming its large workforce to meet future market demands, as evidenced by the slight decrease in unemployment from 4.2 percent in FY 2016-17 to 3.6 percent in 2022, according to the Labor Force Survey 2022. Prime Minister Sheikh Hasina recently highlighted that the unemployment rate is at three percent. Efforts to decrease this further include the Skills for Employment Improvement Program, implemented by the Finance Division, under which over 600,000 individuals have been trained. Furthermore, the successful implementation of various initiatives has already facilitated employment for about 2 million people in fields ranging from IT freelancing to fintech and e-commerce, according to the official document ‘Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)’. The Bangladesh Hi-tech Park Authority is also working to convert over 60,000 youths into IT professionals by 2025, with 37,800 already having completed training programs, the document added. Read more: Join hands in building ‘Smart Bangladesh’ under PM Sheikh Hasina's leadership: Envoy Looking Ahead The ICT Division has formulated the "Smart Bangladesh: ICT 2041 Master Plan" centered around four pillars: Smart Citizen, Smart Government, Smart Economy, and Smart Society. These pillars are expected to guide Bangladesh to the next stage of development, leveraging the potential of the 4IR to achieve a smarter and more sustainable future. The initiatives reflect a comprehensive strategy by the Bangladesh government to harness the power of digital technology and innovation, steering the country toward significant economic transformation and enhanced global competitiveness by 2041. Read more: Palak delivers speech on Smart Bangladesh in Singapore

The Bangladesh government has earmarked Tk 385 billion for agricultural development over the next three years, targeting an average annual growth of 10% in the sector by the 2025-26 fiscal year.  This investment underscores agriculture's pivotal role in achieving food security and driving equitable economic growth, according to the 'Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)'. Despite a diminishing share in GDP, agriculture remains critical for the livelihood of the majority, particularly in rural areas. To boost food production and resilience against adversities, the government's strategy includes developing high-yield and adversity-tolerant crop varieties, expanding mechanization and irrigation, and improving access to affordable inputs like seeds and fertilizers. No respite from heat wave in five days: BMD The policy document highlights several initiatives aimed at modernizing agriculture through technology. These include increasing the use of surface water for irrigation over groundwater to conserve resources, incorporating renewable energy solutions, and employing remote sensing for crop monitoring.  The government also continues to support the sector with subsidies, financial incentives, and technological innovations to foster a sustainable and self-reliant agricultural framework. Significant contributions also come from the fisheries and livestock sub-sectors, which not only bolster GDP—2.53% and 1.91%, respectively—but also provide essential protein sources and livelihoods for over 12% of the population. Achievements in these areas include self-sufficiency in fish, meat, and egg production, with milk expected to follow. Moreover, these sectors are vital for foreign exchange earnings through exports. Looking ahead, the Ministry of Livestock and Fisheries is set to launch development projects to enhance production capacities, adopt advanced management technologies, and improve conservation efforts, particularly for young hilsa fish ('jatka'). Water resource management is another focal area, given its importance to sustainable agriculture. Initiatives are underway to improve surface water availability through the excavation of water bodies and the enhancement of coastal afforestation, aiming to secure equitable water shares from transboundary rivers. NAP Expo 2024: Bangladesh to showcase climate adaptation success, Environment Minister says Amid threats of substantial economic losses due to climate change—projected at a 6.8% reduction in GDP by 2030—the government has prioritized comprehensive strategies to mitigate these impacts. The Mujib Climate Prosperity Plan is designed to equip vulnerable sectors and communities with the tools to enhance resilience and stability against climate-related disruptions. Through these multifaceted efforts, Bangladesh is taking decisive steps to not only safeguard but also advance its agricultural heritage in the face of evolving global challenges.

The Finance Ministry has highlighted the crucial need for a balanced approach to budgetary allocations between recurrent and capital expenditure, recognizing their collective impact on the country's growth prospects and social welfare. This perspective is outlined in the ministry's document, the 'Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)', which underscores the different priorities of developed and developing nations in terms of government spending. Developed countries often prioritize transfers and subsidies, whereas developing economies are more inclined towards investing in social and community services. Despite the positive outcomes from income transfers in enhancing citizens' lives, there is a pressing need to ramp up capital expenditure to cater to the increasing public investment demands and foster the creation of productive assets. Budgetary classifications broadly categorize government spending into recurrent and capital expenditures. Recurrent expenditure encompasses wages, goods and services purchases, subsidies, transfer payments, and interest on loans. In contrast, capital expenditure is directed towards building and enhancing productive assets, including developments under the Annual Development Program (ADP) and non-ADP initiatives. Sikder Group responds to allegations following ACC case against directors The trend in capital expenditure, representing a portion of the total expenditure, has seen an upward trajectory, albeit with fluctuations, while recurrent expenditure has shown a gradual decrease. The revised budget for the fiscal year 2022-23 allocated 59.1 percent to recurrent expenditures, with projections indicating a slight reduction over the next three years. Meanwhile, capital expenditure is set to rise from 40.9 percent in the 2022-23 fiscal year to 41.3 percent by 2026, reflecting an ongoing commitment to bolstering public investment. The increase in recurrent expenditure from 56.7 percent in FY 2017-18 to 59.4 percent in FY 2021-22 was influenced by various stimulus packages introduced to support vulnerable groups during the combined challenges of the COVID pandemic and the Russia-Ukraine conflict. Conversely, capital expenditure through the ADP, a critical component of the budget, has experienced modest growth from 4.5 percent of GDP in FY18 to an estimated 5.1 percent of GDP in FY 2022-23. This strategic focus on balancing recurrent and capital expenditures aligns with the government's objectives to drive sustainable economic growth while ensuring the welfare of its citizens through prudent fiscal management. Eid holiday: Trade activities through Benapole port to be suspended for 5 days

Bangladesh's Finance Ministry is tackling what it identifies as one of its most formidable challenges: significantly amplifying public expenditure to catalyse sustained growth within the private sector.  An official document from the ministry underscores that, in comparison to other economies, Bangladesh's government spending as a percentage of GDP markedly trails, thereby emphasising the urgency to augment investment. Data from the World Economic Forum and the IMF (as of April 2023), reveal Bangladesh's public expenditure at 13.1% of its GDP, a figure that stands in stark contrast to countries like France at 58.5%, Sweden at 46.8%, and even neighbouring India at 28.8%. This discrepancy highlights the room for growth in Bangladesh's fiscal strategy. The government, aiming to elevate GDP growth and living standards, views the expansion of its expenditure as crucial. This ambition is supported by the progressive implementation of reforms in Public Financial Management. Historically, the government has gradually increased its spending relative to GDP, signaling a positive trajectory. Interest rate for April set at 13.55%, for consumer loans add 1%   Outlined in the 'Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)' from the Finance Division, the government's medium-term strategy is geared towards securing inclusive and high growth. This strategy is aligned with Bangladesh's Vision 2041, the 8th Five Year Plan, and the Sustainable Development Goals (SDGs), focusing on priority sectors including infrastructure, industrial production, food security, job creation, healthcare, and education among others. In anticipation of the demands of the Fourth Industrial Revolution (4IR), significant allocations have been dedicated to human resource development, particularly in education and skills training. The fiscal projections set public expenditure targets at 15.2% for the 2023-24 fiscal year, 15.4% for 2024-25, and 16.2% for 2025-26. The document further highlights Bangladesh's progression to a lower-middle-income country, with aspirations to attain upper-middle-income status by 2031. This ambition aligns with the developmental targets set within the 8th Five Year Plan and reflects the government's commitment to resuming the rapid economic growth witnessed pre-COVID-19 and pre-Russia-Ukraine war. Banks to remain open on April 5, 6, and 7 for payment of garment workers’ salary, bonus In response to the COVID-19 pandemic, the government prioritised life and livelihood protection, adopting an expansionary fiscal policy and channeling additional funds into critical sectors.  Despite the global political and economic instability, these measures have begun to show promise, with expectations of returning to pre-pandemic growth levels and policies aimed at promoting pro-poor and inclusive growth. As Bangladesh looks forward, the Finance Ministry is set on formulating strategies to enhance pro-poor growth, stimulate both domestic and international private investment, bolster public investment, curb inflation, generate employment, and alleviate the balance of payment pressures. These objectives underscore a holistic approach to not only recovering from recent global challenges but also setting a solid foundation for long-term, sustainable development.

Bangladesh has ranked 26th among 30 countries with the highest Purchasing Power Parity (PPP) in the World. According to finance website, Insider Monkey, Bangladesh has a per capita GDP of $9.41 thousand based on purchasing power parity. In 2021, the country's GDP was little more than $1 trillion. In three years, it has risen to $1.6 trillion, making Bangladesh one of the world's fastest-growing economies today. GDP (PPP): $1,573,205,815,650, as per Insider Monkey. People’s purchasing capacity has increased, says state minister Shafiqur Top 10 countries with the highest purchasing power parity in the world: 1 China GDP (PPP): $35,102,468,294,640 2. United States GDP (PPP): $28,212,584,701,080 3. India GDP (PPP): $13,837,886,095,650 4. Japan GDP (PPP): $6,693,210,775,800 5. Germany GDP (PPP): $5,737,921,135,920 6. Russia GDP (PPP): $5,180,512,624,880 7. Indonesia GDP (PPP): $4,706,381,666,640 8. Brazil GDP (PPP): $4,533,438,662,610 9. France GDP (PPP): $4,161,339,481,020 10. United Kingdom GDP (PPP): $3,967,703,923,320 Govt's main task is to tame price hike and boost people's purchasing power: PM Hasina at Tungipara What is PPP? Purchasing Power Parity (PPP) is a macroeconomic concept used to compare the relative value of currencies between different countries. Value refers to how much purchasing a currency can do compared to different countries. So, to find that out, economists apply PPP, which is the exchange rate at which one country’s currency would be converted into another to purchase an identical basket of goods and services. The PPP metric is usually used to measure economic productivity and standards of living between countries, according to Insider Monkey. In other words, utilising purchasing power parity, GDP is translated to a common baseline currency (international dollars), allowing for more realistic comparisons of nations and their worldwide positions. Tackling inflation to protect people’s purchasing power key challenge: DCCI Methodology For its list of the ‘30 Countries with the Highest Purchasing Power Parity in the World’, Insider Monkey calculated the PPP using the GDP per capita by PPP of the 50 top countries with the largest economies in the world and their population. It then shortlisted the top 30 and compiled the list in ascending order. The base data for GDP per capita and population has been sourced from the International Monetary Fund and the CIA’s database and is accurate to 2024, the finance website said.