The Centre for Policy Dialogue (CPD) has urged a coordinated approach to address Bangladesh’s economic challenges, stabilizing the economy and protecting low—and limited-income households.

At a media briefing on Wednesday, CPD Executive Director Dr Fahmida Khatun highlighted key economic concerns, including weak revenue generation, fiscal constraints, high inflation, and declining foreign reserves. She emphasized the need for both immediate crisis management and long-term structural reforms.

The interim government, formed after the July 2024 mass uprising, must address these challenges. Fahmida noted that while export growth and remittance inflows have helped improve the balance of payments, low private investment and declining credit growth remain concerns. She stressed the importance of export diversification, foreign direct investment (FDI) promotion, and structural reforms, especially as Bangladesh prepares for LDC graduation in 2026.

The CPD also raised concerns over the banking sector, citing governance issues, inefficiencies, and weak regulatory oversight. Fahmida pointed out that political interventions and legal loopholes have worsened the non-performing loan (NPL) situation, calling for comprehensive reforms backed by strong political commitment.

Distinguished Fellow Professor Mostafizur Rahman noted that the tax-to-GDP ratio remains low while inflation is outpacing wage growth, reducing the standard of living. He stressed the need to address income inequality, referencing the Anti-discrimination Student Movement as a missed opportunity for policy action.